Mumbai: The Central Bureau of Investigation (CBI) has launched a probe into a loan fraud of Rs 26.98 crore by a private firm and its directors against Indian Overseas Bank (IOB). As per the agency, the south Mumbai-based private company took a loan from the bank for business purposes but allegedly diverted the funds and manipulated its financial records. The agency has registered a case on charges of criminal conspiracy, cheating and criminal misconduct.
The company was incorporated in June 2011 for manufacture of home furnishing items like bedsheets, pillow covers, quilts, curtains etc, with its manufacturing unit in Tirupur, Tamil Nadu, and their showrooms at Charni Road and Dadar.
The agency, in is First Information Report (FIR), has alleged that a complaint was received in October 2020 from Ajay Tembhekar, Chief Regional Manager of IOB (Cuffe Parade), against the Charni Road company stating that the firm, through its directors, got sanctioned a cash credit limit and term loan of Rs31.50 crore for business purposes.
The CBI has stated in its FIR that the firm “dishonestly diverted the funds and didn’t repay the loan and requested for restructure of the account”. As it didn’t share the required documents with the forensic auditor of the bank, its account was classified as NPA in September 2013 with an outstanding amount of Rs26.98 crore. Subsequently, the account was declared as fraud and reported by the bank to the RBI in September 2019, as per the FIR.
In its FIR, the CBI has further alleged that the cash credit limit fund was diverted to unproductive assets such as land, equipment and other fixed assets. The company transferred a huge amount from the limit to its SB account ensuring full utilisation of the cash credit limit without any actual business activity.
The CBI stated that the accused presented inflated and inconsistent financial statements and other financials to the bank to achieve desired credit facilities.
