CBI Arrests Kolkata Based Private Company directors in Bank fraud case

CBI ARRESTS TWO DIRECTORS OF A KOLKATA BASED PRIVATE COMPANY IN AN ON-GOING INVESTIGATION OF A BANK FRAUD CASE OF Rs.515.15 CRORE(APPROX)

Press Release New Delhi, 15.03.2018

The Central Bureau of Investigation has today arrested two Directors of Kolkata based private company in an on-going investigation of a bank fraud case to the tune of Rs.515.15 crore(approx).

A case was registered on 27.02.18 U/s 120B, 420, 468, 471 of IPC & Sec. 13(2) r/w 13(1)(d) of PC Act, 1988 against three Directors and Vice President (Finance), all of Kolkata based private company, said Company and unknown bank officials on a complaint from Canara Bank, Circle Office, Kolkata on behalf of a consortium of total 10 banks, viz., Canara Bank, State Bank of India, State Bank of Bikaner & Jaipur, Union Bank of India, Allahabad Bank, Oriental Bank of Commerce, Central Bank of India, Punjab National Bank, State Bank of Patiala and Federal Bank on the allegations of a bank fraud of Rs. 515.15 crore(approx). It was alleged that the Directors and Vice President (Finance) of said private company had cheated the Consortium to the tune of Rs. 515.15 crore(approx) and committed bank fraud in criminal conspiracy with unknown bank officials by availing Bank funds on the basis of false & fabricated Stock/Receivables/Debtors Statements, forged Drawing Power letter etc.

It was further alleged that Letters of Credit (LC) opened by different member Banks of the Consortium on the applications of said private company started devolving from 2012 onwards due to non-maintenance of funds. The said borrower company fraudulently did not route the sale proceeds through the loan account and allegedly siphoned off the entire amount. The said borrower company also inflated its receivables. Some of the purported Debtors had informed SBI that they had no dealings with the said private company. The Debtors list submitted by the said accused persons to the lending banks was false & fabricated. It was also alleged that the suspect companies shown as debtors had not purchased any computers & accessories from the accused company, although payment from them was shown as due. The said accused persons also got opened LCs in the names of some fake supplier companies showing falsely that the accused company procured computer hardware & accessories from them for business.

Both the arrested accused will be produced in the Designated Court tomorrow.

Source- CBI Press Release