CBI arrests CMD of Private Company in an on going investigation
THE Central Bureau of Investigation has today arrested then CMD of a private company in an on-going investigation of a case relating to an alleged loss of Rs.22,842/- crore (approx) to State Bank of India and other Consortium Member banks.
The arrested accused will be produced before the Competent Court. A case was registered on a complaint from State Bank of India, against a Private Company (Borrower Company) and others including its CMD; Directors; another private company and unknown Public Servant(s) & Private Person(s) for causing an alleged loss of Rs.22,842 Crore (approx) to State Bank of India and other consortium member banks. It was alleged that the said accused had cheated the consortium of 28 banks including the branches of erstwhile State Bank of Patiala, Commercial Finance Branch, New Delhi, erstwhile State Bank of Travancore, Commercial Branch, New Delhi, State Bank of India, Overseas Branch, Mumbai etc. The consortium of 28 banks was led by ICICI Bank. The said private company/borrower company was engaged in the business of shipbuilding and ship repair. It was further alleged that the accused had colluded together and committed activities by way of diversion of funds for the purpose other than for which the funds were released by the bank. Huge amounts were allegedly transferred by said private company to its related parties and subsequently adjustment entries were made. It was also alleged that bank loans to the said private company was diverted and huge investment was found to be made in the overseas subsidiary. It was further alleged that funds from banks were diverted to purchase huge assets in the name of its related parties.
The account of said private company turned NPA on 30.11.2013. As per Bank Complaint, the NPA was to the tune of Rs. 22,842 crores (approx) and the majority of the disbursement happened between 2005 and 2013 by a consortium of 28 banks led by ICICI Bank including SBI. The account was restructured under CDR mechanism on 27.03.2014. However, the operations of the company could not be revived.
Searches were earlier conducted on 12.02.2022 at 13 locations in the premises of accused including private company, Directors at Surat, Bharuch, Mumbai, Pune etc which led to recovery of incriminating documents, including books of accounts of the accused borrower company, purchase / sales details, minutes of meetings of Board, Share registers, various contract files, etc.