CBI files two probes connected to bank fraud worth ₹ 2100 Cr

National

The State Bank of India and four other consortium member banks are accused of causing losses of around Rs 1,438.45 crore, according to the Central Bureau of Investigation (CBI), which filed a complaint against a private firm with its headquarters in Mumbai on Monday.

Suman Vijay Gupta, Director (Guarantor), Prateek Vijay Gupta, Director (Guarantor), M/s Ushdev International Ltd., Mumbai, unnamed government employees, and unnamed individuals were included as the defendants in the FIR.

The case was registered amid allegations against the private borrower company (engaged in trading of ferrous and non-ferrous metal) and its directors along with unknown entities that they had caused a huge loss to the State Bank of India and the consortium member banks (Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce (now PNB and Bank of Maharashtra).

The loss was reportedly brought about by syphoning off money, falsifying sales records, and altering books of accounts.

Additionally, it was claimed that the defendant utilised bank funds improperly by making loans and advances to family members as well as to businesses that had not conducted business in the previous 5 to 9 years.

The accused allegedly broke the terms and circumstances of the penalty, it was further stated. The State Bank of India and four other consortium member banks allegedly suffered losses totaling to Rs 1,438.45 crore.

Three locations at the accused’s homes in Mumbai and Pune were searched, and as a result, evidence-supporting papers and items were found there.

The other case stemmed from a Bank of India complaint regarding allegations of bank fraud involving approximately Rs. 710.85 crores to the consortium of banks made up of the Bank of India (as the lead bank), IDBI, SBI, PNB, Shamrao Vithal Cooperative Bank Ltd., and IFCI Ltd., as well as six of the company’s directors and unidentified private individuals/public servants.

Amol Shripal Sheth, Kamalbhai R Sheth, Anish Kasturbhai Shah, Indira J. Parikh, Dipal Palkhiwala, Anurag Kothawala, and Shashin A. Desai, all employed at Anil Ltd. in Ahmedabad, were named as the defendants. All of the defendants included in the FIR were corporate directors.

It was claimed that the aforementioned private corporation was involved in the business of producing a whole spectrum of downstream goods, including liquid glucose, dextrose monohydrate, anhydrous dextrose, sorbitol, and modified starch from basic maize starch.

Furthermore, it was alleged that the firm purposefully engaged in non-genuine transactions with its linked parties in order to extend or increase its credit facilities with the lender banks by lending money to related parties and others without the consent of the consortium banks.

Additionally, it was claimed that the defendant defrauded the banks by misappropriating the value of the closing stock and fixed assets.

Searches were conducted at seven locations in Ahmedabad and Pune at the premises of the accused which led to the recovery of several incriminating documents, articles, some property documents and Rs 38 lakh.

Investigation in both cases is underway