CBI books firm for duping banks of ₹173 crore
The CBI case was registered on the basis of a written complaint dated September 14, 2022, filed by the bank’s asset recovery management branch in Mumbai.
MUMBAI: The Central Bureau of Investigation (CBI) recently registered a case against a Mumbai-based private logistics firm for allegedly diverting loan funds and causing a loss of ₹173 crore to a consortium of banks led by the state-run Bank of India.
The CBI case was registered on the basis of a written complaint dated September 14, 2022, filed by the bank’s asset recovery management branch in Mumbai.
“The bank’s complaint alleged that the accused firm, its directors, unknown public servants and other unknown persons had hatched a criminal conspiracy among themselves from 2013 to 2016,” said a CBI official. “As part of this conspiracy, they cheated Bank of India and other banks in the consortium—Union Bank of India, Canara Bank, State Bank of India, Bank of Maharashtra, IDBI Bank, Indian Overseas Bank and Andhra Bank, which has since been merged with Union Bank of India.”
The bank’s complaint alleged that the accused firm had cheated it and the bank consortium, which resulted in a loss of ₹173.18 crore to the latter. “It was alleged that the logistics firm was availing of credit facilities to the tune of ₹167.50 crore from the bank consortium and had siphoned off the loan funds,” the CBI official said.
The firm allegedly diverted the loan funds to its own sister concerns. Four of the sister concerns that are suspected to have received the loan proceeds are under the scanner of the CBI.
“Diverting part of the loan funds to sister concerns was in contravention of the terms of the loan sanction agreement,” the CBI official said, adding that the agency was also verifying if the accused firm had rotated parts of the loan funds with seven other firms. The company also allegedly made numerous payments to unrelated parties.
“The accused company paid a high remuneration to its promoters and directors despite the fact that the financials of the borrower were under stress, which indicates the malafide intention of the borrower,” the CBI official said.
The firm is accused of deriving illegal gains while causing a loss to the members of the bank consortium. The CBI FIR invoked sections related to the offences of criminal conspiracy, cheating and criminal misconduct under the Indian Penal Code and the Prevention of Corruption Act.
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