Mumbai: The special CBI court has convicted garment firm Asha Exim Apparels Pvt Ltd and its directors Rajesh Kanojia and Prakash Kanojia in a Bank of Baroda fraud case involving ₹4.76 crore.
The court sentenced both directors to three years’ imprisonment and imposed a fine of ₹2 crore each. The company was also directed to pay a fine of ₹1 lakh.
According to the prosecution, the company had availed multiple loans from Bank of Baroda, including term loans for machinery purchase and acquisition of a plot in Rabale, Navi Mumbai, along with working capital assistance.
CBI alleged that the accused diverted and siphoned off loan funds. Investigation found that the MIDC plot, which was not mortgaged to the bank, was sold to another person. Inspection also revealed inadequate stock against the cash credit released by the bank.
The company later defaulted on repayment, causing a wrongful loss of over ₹4.15 crore to the bank.
The court, however, acquitted the then bank manager and other accused due to lack of evidence regarding conspiracy charges.
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