Mumbai: The Special Task Branch of the Central Bureau of Investigation (CBI), Mumbai, has registered a case against a private company and its directors for allegedly causing a loss of Rs 9.55 crore to the State Bank of India (SBI). The agency stated that the fraud took place during the period from 2018 to 2020, when the accused persons, in conspiracy with each other, obtained credit facilities through misrepresentation, deception, and inducement, and misappropriated the bank's funds by entering into transactions that were in violation of the terms and conditions governing the sanction of the credit facilities.
The company, which is situated in Powai, was engaged in the business of processing and wholesale trading of agro commodities like groundnuts, pulses, sesame, fenugreek, mustard, etc., through its rented plant in Bikaner, Rajasthan. These commodities were purchased in raw form from farmers, and the required processing was carried out for further domestic and export sales to buyers. The company had approached SBI for credit facilities to hire state-of-the-art processing units for agro commodities on a leasing basis.
According to the CBI, the company was sanctioned a cash credit limit of Rs. 9.50 crore in July 2018 and was also sanctioned a standby line of credit of Rs. 1.4 crore for a period of 90 days in February 2019, which was repaid by the company in June 2019. As per the stock audit report of September 2019, the borrower company was in the practice of purchasing goods at higher prices from the same parties to whom the goods were sold.
As per a unit inspection report of February 2020, the activity in the unit could not be evidenced. There were some machines lying on the premises to be installed, but there was no major activity taking place. The value of the collateral security at the time of sanction was Rs. 9.62 crore, as per the valuation report of April 2018. The valuation considered at the time of sanction was Rs. 6.98 crore. After the account became an NPA, the value of the collateral security declined drastically to Rs. 4.73 crore. Thus, there was an erosion in valuation of more than 50 percent. Therefore, there was overvaluation of the collateral security at the time of sanction.
The collateral security was under construction, and possession of the collateral security had not been received by the owner at the time of sanction. During subsequent visits, it transpired that construction of the building was incomplete and had remained halted at the same level since 2018. The occupancy certificate for the building has not yet been received. The said facts prima facie disclosed the commission of offences of criminal conspiracy, cheating, and criminal misconduct, the agency stated in its FIR.
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