CBI Registers a Case Against Directors of Private Company & Others on The Allegations of Bank Fraud and Conducts Searches

(Judicial Quest News Network)

The Central Bureau of Investigation has registered a case against two Directors of Indore based private company; the said private company based at Indore and unknown public servants on a complaint from Bank of Baroda, Indore. It was alleged that borrower company had committed fraud during the period of 2014 to 2017 in conspiracy with its directors & unknown public servants and cheated Bank of Baroda to the tune of Rs. 29.41 crore (approx.). It was further alleged that the said private company based at Indore was advanced the working capital loan and term loan amounting to Rs. 36 crores by Bank of Baroda on 13.09.2014 after taking over credit facilities extended by IDBI Bank. The said loan account became NPA on 02.05.2017 and was subsequently reported as fraud to RBI. The outstanding loan amount was Rs. 29.41 crore. It was also alleged that the forensic accounting had revealed siphoning of funds and diversion of funds by the said private company.

          Searches were conducted today at the premises of accused in Bhopal & Indore which led to recovery of incriminating documents.