The Central Bureau of Investigation (CBI) has registered a case of cheating, criminal conspiracy and criminal misconduct against a Jalgaon-based firm and its promoters for allegedly cheating Bank of Baroda to the tune of ₹16.74 crore.
Bank of Baroda official lodged complaint
According to the CBI, a complaint had been received from Rajesh Bairagi, Assistant General Manager, Regional Head, Bank of Baroda, against the accused persons and the firm, unknown public servants and private persons, alleging that all the accused entered into a criminal conspiracy and with dishonest intention cheated the Bank of Baroda to the tune of ₹16.74 crore, by way of siphoning, diversion of bank funds during 2017-2019.
“The borrower company is a partnership firm incorporated in May 2003. The firm is engaged in cotton ginning and pressing and related activities. The borrower company and its group companies have been dealing with the bank since 2006. All the accounts were operated till December 2018 with certain deficiencies and afterwards, the promoter stopped transactions in the account,” the CBI alleged in its FIR.
Company loan account turned into NPA in 2019
Due to insufficient transactions in the accounts and non-servicing of interest, the loan account of the company turned into NPA in March 2019. “The bank started legal action against all the accounts of the group. During the stock audit in April 2019 when the auditor visited the factory premises with the branch officials, it was found that the plant was not operational and no stock was there. The borrowers by submitting false stock statements and book debts statements, claimed incorrect drawing power. The borrower firm did not utilise the fund for permitted activities as per sanction and diverted the same through its group companies,” the CBI FIR stated.
