New Delhi, Nov 9 (Agency) The Central Bureau of Investigation (CBI) arrested two former Directors of a private company based at Kathua n Jammu and Kashmir in an investigation into an alleged bank fraud. A case was registered on February 12, 2020 against the private company and others including its Managing Director and Directors on a complaint from the State Bank of India (SBI) in Ludhiana. It was alleged that the accused conspired with SBI officials and cheated the bank of Rs 87.88 crore from 2006 to 2019 by illegally removing machinery and other parts without getting prior permission or without informing the lender banks, a CBI statement stated.
The proceeds and value of such machines and motors had not been deposited in the account, it stated. It was further alleged that the accused stealthily removed the imported and indigenous machinery of pulp section and other parts from the factory without the knowledge of the bank. It was also alleged that the accused illegally sold machinery parts as scrap and arranged fake invoices to cover up the said illegal sale, it added. It was found that the accused had allegedly diverted funds from the loan account, it added. Both the accused were produced before a court in Jammu on Wednesday.