Mumbai News: CBI books logistics firm, directors in ₹173 crore bank fraud

Mumbai: The Central Bureau of Investigation (CBI) has registered a case of criminal conspiracy, cheating and criminal misconduct against a city-based logistics company and its directors for allegedly duping a consortium of banks to the tune of ₹173.18 crore.

According to the CBI, a written complaint was received on September 14, 2022 from Rakesh Kumer Garg, Deputy General Manager, Bank of India, asset recovery management branch, Andheri, alleging that the borrower company, its directors, unknown public servants and unknown persons during the period 2013 to 2016 were party to a criminal conspiracy to cheat the Bank of India and other consortium banks, resulting in loss of ₹173.18 crore.

“It is alleged in the complaint that over the period the company was availing various credit facilities of ₹167.50 crore from consortium banks led by Bank of India. It is further alleged that the company siphoned off funds by way of transfer to their own sister concerns which were contradictory to the sanction terms,” the agency officials claimed.

High remuneration to promoters and directors

The bank has also alleged in its complaint that the company was engaged in round tripping of funds with at least seven companies. The company paid high remuneration to promoters and directors, despite the fact that the financials of the borrower were under pressure, which indicates malafide intentions of the borrower, the bank has alleged in its complaint to the CBI.

“The company made numerous payments to unrelated parties. Further, the borrower submitted different debtors lists to the bank while actually they were dealing with the other debtors. The company did transactions with the other banks than consortium members without the permission of consortium members. The accused fraudulently enriched themselves illegally and derived unlawful and unjust gains and thereby caused loss to the member banks of the consortium to the tune of ₹173.18 crore,” the agency claimed in its FIR.