Mumbai: Private company, directors booked by CBI in Rs 1,438 Crore bank fraud case

The Central Bureau of Investigation (CBI) has registered a case against a Mumbai-based private company, its directors, guarantors and unknown public servants for allegedly causing the loss of an amount of Rs 1,438.45 crores to State Bank of India (SBI) and four consortium member banks.

According to the CBI, a written complaint dated 09.12.2020 was received from Sanatan Mishra, Deputy General Manager, SBI, Stressed Assets Management Branch, Nariman Point, alleging that a Mumbai-based company, engaged in trading of Ferrous and Non-ferrous metal, its directors, guarantors and unknown public servants, during the period 01.042013 to 31.03.2018 were party to a criminal conspiracy to cheat SBI and four other consortium member banks, who have sanctioned the credit facilities and have given the mandate to file the complaint.

"It is alleged that the company was under stress since December 2015/January 2016. ln order to overcome the situation, at the request of the company, the Restructuring /enhancement of credit facilities was sanctioned/approved on January 22.01.2016. However, the company could not avail of the facility as the account was not regularised as per the terms of the sanction. The accounts were irregular since 05.07.2016 and subsequently classified as NPA as on 02.10.2016," the CBI stated in its FIR.

The CBI claimed that the company was allegedly involved in the diversion of funds and has registered an offence on charges of criminal conspiracy and cheating. The Banking Security and Fraud Cell of the CBI has initiated a probe into the case.