Mumbai, Feb 01: The Central Bureau of Investigation (CBI) has launched an investigation against a private limited company for allegedly causing a loss of Rs 12.72 crore to e-Allahabad Bank (now Indian Bank) by way of misrepresentation of data and fraudulent diversion of funds disbursed under credit facilities sanctioned by the bank.
Complaint by Indian Bank official
According to the CBI, a complaint was received from Naresh Chandra Nehra, Deputy General Manager, Indian Bank, Stressed Assets Management Branch, Mumbai, alleging that the borrower company, which was involved in the wholesale trading of cosmetic items, and its four directors, in criminal conspiracy with unknown bank officials and private persons, cheated e-Allahabad Bank (now Indian Bank) to the tune of Rs 12.72 crore by fraudulently availing credit facilities of Rs 15 crore.
Alleged criminal conspiracy
“It is alleged that the borrower company and its directors, along with unknown public servants and unknown others, entered into a criminal conspiracy during the period from 2011 to 2018, with the intent to cheat e-Allahabad Bank (now Indian Bank), Khar Branch, Mumbai, to avail loans by way of misrepresentation of data and fraudulent diversion of the funds disbursed under credit facilities sanctioned by the bank. In pursuance of the said criminal conspiracy, the company got sanctioned a letter of credit loan facility of Rs 15 crore from the bank,” said a CBI official.
Diversion of funds and NPA classification
“The borrower company and its directors, with fraudulent and dishonest intentions, submitted false documents and stock statements for disbursement of the credit facility. The accused persons fraudulently diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned. Thus, the accused misappropriated the bank funds and thereby cheated the bank, causing wrongful loss to the tune of Rs 12.72 crore and corresponding wrongful gains to themselves. The directors of the borrowing company failed to service the instalments and interest of the loans and, accordingly, the account of the company was classified as an NPA in June 2018. The account was reported as fraud by the bank to the RBI in June 2020,” the official said.
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Sections invoked
A case has been registered under Sections 120B (criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property), 467 (forgery of valuable security, will, etc.), 468 (forgery for the purpose of cheating), and 471 (using as genuine a forged document) of the Indian Penal Code, along with relevant sections of the Prevention of Corruption Act.
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