Mumbai: City-based company, directors booked in ₹7.30 crore bank fraud

The Central Bureau of Investigation (CBI) has registered a case of cheating against a private company, its directors and the holding company for allegedly causing a loss of ₹7.30 crore to the Bank of Maharashtra.

According to the CBI, on February 10, 2022, a written complaint had been received from Manoj Kare, Zonal Manager and General Manager, Bank of Maharashtra, Mumbai South Zonal Office, alleging that a Vikhroli-based company was sanctioned term loan of ₹21.50 crore and cash credit of ₹7.50 crore by the industrial finance branch of the bank to the company on May 27, 2014.

Borrower company is a 100% subsidiary of the holding company

“The said company had allegedly cheated the bank by indirectly transferring funds by way of capital advances to various parties and thereafter the fund is brought back into other bank accounts and transferred to the account of the holding company. The borrower company is a 100% subsidiary of the holding company which is in the business of implementing solutions for system integration, networking services and information technology. The borrower company is engaged in providing end-to-end data centre services to its customers,” the FIR stated.

Diversion of funds reported in forensic audit

“The borrower company, by way of routing sales through other banks, also violated the sanction terms and conditions of the credit facility. The company misrepresented the data of stock and debtors to Bank of Maharashtra. A forensic audit of the account of the borrower company reported diversion of funds by the company. The company and the accused persons involved, during the period from the year 2014 to year 2018 were party to a criminal conspiracy to cheat the bank. In pursuance to the aforesaid criminal conspiracy, the accused person availed term loan of ₹21.50 crore and cash credit of ₹7.50 crore amounting to total ₹29.00 crore. The account of the borrower was later classified as NPA on May 29, 2018 and caused a wrongful loss of ₹7.30 crore to the bank,” the FIR stated