New Delhi, June 22 (Agency) Central Bureau of Investigation (CBI) on Wednesday registered a case against a Mumbai-based private (borrower) company, its Ex-CMD, Director and others on the charges of causing loss of Rs 34,615 crore to banks, the probe agency said. Searches were conducted at 12 locations in Mumbai at the premises of the accused which led to recovery of incriminating documents today, CBI statement in a statement. The probe agency said that on the basis of complaint from Union Bank of India, Industrial Finance Branch, Mumbai against private (Borrower) company based at Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servants and private persons on the allegation that the accused cheated a consortium of 17 banks led by UBI to over Rs 34,615 crore by siphoning off loans availed from the said banks and falsifying the books of said private (Borrower) company and creating Shell Companies/false entities, which had come to be known as “Bandra Book Entities”.
It was alleged that the private company and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities, CBI statement added. It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage and conceal dubious transactions. The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the said private (Borrower) company, the statement added.