New Delhi : The Central Bureau of Investigation (CBI) has filed a case against Chennai-based jewellery chain Nathella Sampath Jewelry for cheating a consortium of banks, led by State Bank of India, of Rs 380 crore.
An FIR filed on Saturday said the company delayed paying interest on its debt in April last year. “Inspection of the showrooms indicated that there was no activity and low level of stocks at the showrooms,” the FIR said.
An audit of the stocks and receivables revealed a “sudden depletion” of stock to Rs 18.17 crore as on Jul 19 from Rs 495 crore as on March 31.
“Decrease in stocks…was neither reflected in the form of cash flows nor reflected in debtors as on Jul 19, 2017. No proper explanation was forthcoming from the company for the variation in the stocks,” the FIR said.
Subsequently, in a meeting of the consortium of banks — SBI, HDFC Bank, and Union Bank of India — it was decided that a forensic audit of the company’s account would be conducted. The audit showed misrepresentation and falsification of records, diversion of funds, as well as collusion by the statutory auditors.
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