Mumbai: The Central Bureau of Investigation (CBI) has lodged an FIR against a company and its directors over a Rs 167 crore loan fraud. The company allegedly diverted funds to individuals for civil and construction work not backed by invoices thereby causing wrongful loss to the SBI to the tune of Rs167 crore and corresponding wrongful gain to the company and its directors, sources claimed.
Dy GM of SBI Nariman Point registers complaint
According to the CBI, a written complaint was received from Sanatan Mishra, Deputy General Manager, SBI, Nariman Point, against the company and its promoters / directors. The bank said the company was sanctioned term loan of Rs167 crore and Rs155 crore each by the Bank of India and Indian Overseas Bank (consortium members) out of total project cost of Rs721.54 crore, for the purpose of setting up an auto component manufacturing complex in Nagpur.
The sources said the fraud took place at SBI’s Pune Branch, from where the accused diverted the funds, manipulated books of accounts with an objective to defraud the bank and to gain unlawfully at the cost of bank’s funds.
“The fraud perpetrated by the accused persons came to light when a forensic audit was conducted and its report was submitted in July 2019. The fraud was declared in the account by the Fraud Identification Committee in its meeting held on August 31, 2019 and the account became NPA on October 28, 2016,” the official said.
“Consortium lenders had granted term loan for capex. Significant portion of plant and machinery are not installed and remained in packed condition and not put in use. Certain machinery are not available in the factory but said to be kept at a different location. The operations couldn’t commence due to non-utilisation of purchased plant and machinery and the account slipped to NPA as on October28, 2016 due to non-servicing of interest and instalment. Group accounts of the company have also slipped to NPA status,” the agency said.