CBI REGISTERS TWO SEPARATE CASES AGAINST PRIVATE COMPANIES & OTHERS INCLUDING THEIR DIRECTORS ON THE ALLEGATIONS OF BANK FRAUDS CAUSING LOSSES TO BANKS OF OVER 200 CRORES; SEARCHES CONDUCTED

(Judicial Quest News Network)

The Central Bureau of Investigation has registered a case on complaint from State Bank of India, SAM Branch, Ahmedabad against a private company based at  Surat (Gujarat) and others including its Directors, unknown public servants & unknown others on the allegations of causing loss of Rs. 214.11 crore (approx) to SBI in the matter of sanctioning Term Loans to said private company for purchasing new commercial vehicles. It was further alleged that the accused had cheated the bank by not hypothecating the vehicles in favour of State Bank of India. It was also alleged that the loan proceeds were not utilized for the purpose for which the term loans were sanctioned.

            Searches were conducted at the premises of accused at Surat & Mumbai which led to recovery of incriminating documents.

            The other case was registered on complaint from Canara Bank, Lucknow against private companies and others including its Directors, Guarantor (all private persons) & unknown public servants. It was alleged that the accused in conspiracy with each other had cheated Canara Bank by defrauding, misappropriating & diverting the loan amount and caused loss to the tune of Rs. 24.82 crore (approx) to Bank. It was further alleged that the private company mortgaged part of collateral security to  a Housing Finance Company to secure a loan of Rs 21.26 crore (approx). The account turned NPA on 30.06.2017. It was also accused that the borrower company had sold primary & collateral security without intimating and obtaining NOC from the bank.

            Searches were conducted at the premises of the accused including at Lucknow, Faizabad & Ghazipur (Uttar Pradesh) which led to recovery of incriminating documents.

            Investigation in both the cases is continuing.