THE Central Bureau of Investigation has registered a case on complaint from State Bank of India against a private company based at Mumbai(Maharashtra) & its Director/Guarantor and unknown public servants/unknown others on the allegations of causing loss of Rs.1438.45 crore(approx) to State Bank of India and four other consortium member banks. It was alleged that the said private/borrower company(engaged in trading of ferrous & non-ferrous metal) and its Promoter Directors along with unknown entities had caused loss to State Bank of India and consortium member banks (Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce(now PNB and Bank of Maharashtra) allegedly by diverting/siphoning off funds, showing sales to overseas dormant entities, manipulating books of accounts, etc. It was also alleged that the accused misappropriated bank funds by giving advances to the entities which had not carried out business during last 5-9 years and provided loans and advances to its related parties. It was further alleged that the accused violated the sanction terms & conditions. An alleged loss of Rs.1438.45 crore(approx) was caused to State Bank of India and four other consortium member banks.
Searches were conducted at three places at the premises of accused at Mumbai and Pune(Maharashtra) which led to recovery of incriminating documents/articles.
The other case was registered against a private company based at Ahmedabad & its 06 Directors and unknown private persons/public servants on complaint from Bank of India on the allegations of bank fraud of Rs. 710.85 crores(approx) to the consortium of banks comprising of Bank of India (as the lead bank), IDBI, SBI, PNB and Shamrao Vithal Cooperative Bank Ltd. as well as to IFCI Ltd.
It was stated that the said private company was engaged in the business activity of production of entire range of unmodified starch, modified starch from basic maize starch and downstream products like Liquid Glucose, Dextrose Monohydrate, Anhydrous Dextrose, Sorbitol etc. It was further alleged that the company had lent funds to related parties & others without approval of consortium banks with an intention to siphon-off the funds and deliberately entered into non-genuine transactions with its related parties to renew/enhance its credit facilities from the lender banks. It was also alleged that the accused had misappropriated the value of closing stock as well as fixed assets and thus cheated the banks.
Searches were conducted at 7 locations including at Ahmedabad and Pune at the premises of accused which led to recovery of several incriminating documents, articles, some property documents and Rs.38 lakh.
Investigation in both the cases is continuing.
