The CBI has registered a criminal offence against a company, its directors, guarantors and unknown public servants for allegedly causing losses to the tune of Rs 149.89 crore to Union Bank of India (UBI).
According to the CBI, while the company is situated in Kutch, Gujarat, its directors and guarantors are residents of Mumbai. Also, the company’s administrative office is located in the city. The company was involved in manufacturing gas cylinders.
On June 5, the CBI had received a complaint from T Deen Dayal, deputy general manager, stressed asset management branch of Union Bank of India at Fort, alleging that the company, its directors and others have cheated them of over Rs 149.89 crore. “The company had been banking with UBI since 2008 and the bank had sanctioned credit facilities to the company to complete its work. The company’s account was declared NPA in January 2016 in accordance with the procedures when it was found that the company repeatedly defaulted in the payments of interest and installments," the bank has alleged in its complaint.
“It is also alleged that the company and accused persons had misappropriated the bank’s funds and diverted the same to earn wrongful gains,” the FIR stated.
Based on the complaints, the CBI has registered an offence on June 9 under Sections 120B (criminal conspiracy), 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code and relevant section of the Prevention of Corruption Act for criminal misconduct by public servant.
