The Central Bureau of Investigation's (CBI) Economic Offences Branch of Mumbai has registered a case of cheating, criminal conspiracy and forgery against a Mumbai-based private company, six others and unknown public servants for allegedly causing wrongful loss of Rs 441.45 crore to the consortium of banks led by Union Bank of India.
According to the CBI, a written complaint was received by Debraj Bag, DGM, Union Bank of India, Stressed Assets Management Branch, Mumbai, authorised by the Competent Authority and also mandated by the member banks of consortium against a Grant Road-based private company engaged into metal business and others.
"It has been alleged that the accused persons entered into a criminal conspiracy with the intent to cheat the consortium of banks in the matter of availing credit limits in the name of the company to the tune of Rs450 crore. In pursuance of the said conspiracy, the accused persons misrepresented financial position in account heads like a loan, receivables, plant, machinery and motor vehicle etc," the CBI stated in its FIR.
"It has also been alleged in the complaint that instances of discounting of LCs higher than the invoice values recorded in the books, extending of loans to both related and unrelated parties, payment transaction without any business, diversion of funds etc. have been found. It has also been alleged in the complaint that vehicle numbers of transporting vehicles do not exist and some vehicle numbers were of two-wheelers and cab," the FIR added.
The CBI stated that due to non-payment of bank dues, the consortium members have classified the account of the company as NPA on various dates with an outstanding amount of Rs 441.45 crore and thereby causing wrongful loss to the consortium banks and corresponding gain to themselves.
A case has been registered by the CBI under sections 120B (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property), 467 (forgery of valuable security, will, etc.), 468 (forgery for purpose of cheating) and 471 (using as genuine a forged document or electronic record) of the Indian Penal Code and relevant sections of the Prevention of Corruption Act.
