Mumbai: The CBI has registered a case against a Nagpur-based company and its directors for allegedly causing a loss of ₹16.85 crore to Union Bank of India. The company is into the business of poultry farming and trading of agro products like paddy, maize, wheat and rice.
According to the CBI, a written complaint dated June 28 was received from MVN Ravi Shankar, the bank’s regional head for Nagpur. An agency alleged that the firm and other accused persons entered into a criminal conspiracy, committed criminal breach of trust and criminal misconduct from 2011 to 2018 by dishonestly releasing pledged primary security in an legal manner, and fraudulently diverting credit facilities sanctioned to the company.
The bank classified the company account as a non-performing asset on January 31, 2019 and reported it as fraud to the Reserve Bank of India on February 25 the same year. A CBI official alleged that the borrower, in connivance with accused persons, misappropriated bank’s loan and also diverted and siphoned funds, causing great loss of public money.