CBI files two separate cases of bank fraud against pvt companies

New Delhi, July 11 (Bureau) The Central Bureau of Investigation (CBI) registered two separate cases of bank fraud worth Rs 1438.45 crore and Rs 710.85 respectively and conducted searches at ten locations, here on Monday. The first case was registered based on a complaint from State Bank of India against a private company based at Mumbai and its Director/Guarantor and unknown public servants and others on the allegations of causing loss to the tune of Rs1438.45 crore to the bank and four other consortium member banks, the CBI statement stated.

It was alleged that the private/borrower company (engaged in trading of ferrous & non-ferrous metal) and its Promoter Directors along with unknown entities had caused a loss to SBI and consortium member banks, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce (now PNB and Bank of Maharashtra) allegedly by diverting funds, showing sales to overseas dormant entities and manipulating books of accounts. It was also alleged that the accused misappropriated bank funds by giving advances to the entities which had not carried out business during the last 5-9 years and provided loans and advances to its related parties. It was also alleged that the accused violated the sanction terms & conditions, it stated. Searches were conducted at three places at the premises of accused at Mumbai and Pune which led to recovery of incriminating documents/articles.

In the second case which was registered against a private company based at Ahmedabad and its six directors and unknown private persons/public servants on the basis of a complaint from Bank of India on the allegations of bank fraud to the tune of Rs 710.85 crore 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, CBI statement stated. It was alleged that the company had lent funds to related parties and 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 stated. It was 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 seven locations including at Ahmedabad and Pune at the premises of the accused which led to recovery of several incriminating documents, articles, some property documents and Rs 38 lakh, a CBI statement stated.