Mumbai, March 16: The Mumbai Unit of the Economic Offences Branch (EOB) of the Central Bureau of Investigation (CBI) has registered a case against a private company involved in the business of rerolled products such as channel, flats, stripes and pipes for allegedly cheating a consortium of Union Bank of India (lead bank) and Federal Bank to the tune of Rs 61.13 crores.
Complaint filed by Union Bank official
According to the CBI, the complainant in the case is Anuj Kumar Singh, deputy general manager and regional head, Union Bank of India, Raipur. A complaint dated February 12 alleged that the borrower company and its directors, in a criminal conspiracy with unknown public servants and private persons, cheated a consortium of Union Bank of India (lead bank) and Federal Bank to the tune of Rs 61.13 crores.
Allegations of fictitious stock statements
"The complaint discloses that the borrower company, situated in Chhattisgarh, was involved in the manufacturing and trading of MS Ingot, rerolled products viz, MS Angle, channel, flats, stripes and pipes. It is alleged that the company and its directors and unknown public servants and unknown others entered into a criminal conspiracy during the period 2023 to 2025, cheated the consortium of Union Bank of India and Federal Bank by dishonestly and fraudulently submitting fictitious stock statements to the banks containing fictitious debtors to avail the sanctioned cash credit limits and avail higher drawing power than eligible," the CBI stated in its FIR.
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Funds allegedly diverted, account declared NPA
"In pursuance of the said criminal conspiracy, the borrower company and its directors with fraudulent and dishonest intentions fraudulently diverted and utilised the disbursed funds for purposes other than the purpose for which funds were sanctioned. Thus, the accused directors cheated the bank and misappropriated the bank funds and thereby caused wrongful loss to the tune of Rs 61.13 crores to the consortium of Union Bank of India and Federal Bank and corresponding wrongful gains to themselves. The directors of the borrowing company failed to service the instalments and interest of the loans and accordingly, the account of the company was classified as NPA in February last year. The account was reported as fraud to RBI by Union Bank of India and Federal Bank last year," the CBI stated in its FIR.
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