New Delhi, May 8 (Agency) The Central Bureau of Investigation is conducting searches at three locations in an ongoing fraud case at Bank of India of Rs 41 crore, the agency informed on Saturday. The raids are being conducted at the premises of the accused including private firms and directors of the companies. So far, the probe agency has recovered Rs 16.5 lakh in cash, 88 foreign currency notes, a few property documents, details of several bank accounts and other incriminating documents during searches. “A case was registered on complaint from Bank of India, Ludhiana against a Private firm based at Gaunspura, Tehsil- Malerkotla (Punjab) and others including then Directors, Guarantors of private company, another private firm & Unknown Public Servants/Private Persons.
It was alleged that the said private firm based at Gaunspura, Malerkotla was engaged in trading of DOC Rice Bran, DOC Mustard Cake, Cottonseed Cake, Maize, Bajra and other food grains,” according go a statement from CBI. “The borrower firm was sanctioned loans at 4 intervals from 2011-2014 by the Bank. It was further alleged that the firm through its Directors had concealed hypothecated stock and diverted book debts with malafide & dishonest intention so that the same were not made available to the creditor Bank for inspection and for effecting recovery as secured creditor. An alleged loss of Rs. 40.92 Crore(approx) was caused to Bank,” it said. The central probe agency also said that the account was classified as NPA on 31.03.2014 and based on anomalies, the account was declared as fraud on 09.02.2018. “It was also alleged that the loan availed by the accused has not been used for the purpose for which it was availed,” it added.