New Delhi: The Central Bureau of Investigation (CBI) has registered a case against a Bengaluru based private company for causing an alleged loss of Rs 200.38 crore to banks.
The CBI booked company’s directors, chartered accountant and unknown public servants on a complaint from Indian Bank for defrauding the consortium of banks.
“It was alleged that the borrower company based at Bangalore, during the period 2017-2019, in connivance with others, had availed credit facilities under consortium lending, consisting of Indian Bank and e-Vijaya Bank (now Bank of Baroda) with Indian Bank as leader of the consortium and defrauded the consortium of Banks, thereby causing a loss of Rs 200.38 crore (Rs 168.39 crores to Indian Bank and Rs 31.99 crore to Bank of Baroda),” said CBI.
According to CBI, the account became non-performing asset (NPA) on April 30, 2019, and reported as a fraud on November 7, 2019.
It was further alleged that the borrower company in order to avail higher working capital limits from the banks, had inflated its turnover, made purchase transactions with the related/sister concerns, inflation of receivables, diversion of the fund within the related concerns, submitted false, fudged accounts, statements, etc and siphoned off the banks’ funds, thereby causing loss to the said banks.
Searches were conducted at the residential and official premises of the accused at Bangalore and Shoolagiri, Krishnagiri District (Tamil Nadu) which led to the recovery of several incriminating documents and other material evidence.
The CBI informed that an investigation is continuing.