CBI Registers a Case Against Private Company & Others Including Its Directors in A Bank Fraud Case and Conducts Searches

(Judicial Quest News Network)

The Central Bureau of Investigation has registered a case against a private company based at Guntur(Andhra Pradesh) and others including its Managing Director, Promoter/ Director &  Unknown public  servants. It was alleged that the private company was engaged in trading of tobacco.  It was further alleged that the said private company availed FB(CC& SLC) credit facilities aggregating to Rs.45 crore(approx) from SBI, Specialised Commercial Branch, Guntur. These credit facilities were inter alia secured against hypothecation of movable assets, mortgage of immovable properties and personal guarantees. The account became NPA on 27.02.2019 due to lower sales coupled with lower margins, cash losses, etc. in addition to submission of inflated /manipulated stock statements and transfer of funds to the personal accounts of Directors.  An alleged loss to the tune of Rs.19.28 crore(approx) was caused to Bank.

            Searches were conducted at the premises of the accused at around 3 places located in Andhra Pradesh and Telangana.             Investigation is continuing