CBI Registers Bank Fraud Case Of Over Rs 200 Crore Against Bengaluru Firm:

Pramesh S Jain

The CBI officials have registers bank fraud case against Bengaluru-based company for cheating the nationalised banks and avail loans worth Rs 200 Crore through fraudulent means.

Based on the complaint filed by banks the CBI officials on Wednesday registered a case against Bangalore based private company including its Directors,Chartered Accountant and Unknown public servants and others.

On Wednesday the CBI officials conducted searches at the residential and official premises of the accused at Bangalore and Shoolagiri, Krishnagiri District in Tamilnadu which led to recovery of several incriminating documents and other material evidences

The company deals With the steel manufacturing company allegedly borrowed the loan between the year 2017-2019.

The company 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), according to the official release.

The account became NPA on April 2019 and reported as fraud on November 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 fund within the related sister concerns,submitted false fudged accounts and statements.