CBI probes alleged Rs 22-cr financial institution fraud by two Himachal manufacturing companies

Shimla |

October 19, 2020 10:06:56 pm

In July this yr, the CBI’s anti-corruption bureau unit in Shimla registered two FIRs in opposition to the proprietors of the companies for dishonest, felony conspiracy. (Representational Image)

(Written by Gagan)

The Central Bureau of Investigation (CBI) is probing an alleged financial institution fraud by two Baddi-based manufacturing companies which availed loans price greater than Rs 22 crore based mostly on “extremely overvalued” collateral securities from an Andhra Bank department in Shimla again in 2017. Both the manufacturing models had been later discovered to be non-functional, whereas the mortgage quantity was allegedly diverted into different accounts.

The companies — Brilliant Electro Air and Bright Plastics — included in 2010 and 2017 respectively, have the identical registered deal with at Manjhotu in Barotiwala.

Proprietors of the companies utilized for 2 separate loans on the financial institution’s department in New Shimla in search of working capital for his or her models, which they claimed had been engaged in making plastic and fan components, based on letters to the CBI written earlier this yr by Nishith Nayak, the financial institution’s zonal supervisor in Chandigarh.

The financial institution sanctioned an open money credit score (OCC) restrict of Rs 10 crore to Brilliant Electro Air in January 2017 and Rs 12 crore to Bright Plastics in May that yr, wrote Nayak.

For collateral safety, the companies provided land at a village in Punjab’s Fatehgarh Sahib, which was later discovered to be extremely overvalued – its worth falling from Rs 2,500 crore to round one-fifth of the quantity throughout revaluation by the financial institution. The financial institution mentioned that the preliminary valuation of the land by the empanelled valuer was discovered to be “inflated”.

The zonal supervisor mentioned in his grievance that the debtors allegedly cheated the financial institution by diverting funds to accounts of their family members maintained with different banks. In 2018, each accounts had been declared as non-performing property (NPA) and final yr, they had been declared as fraud by the financial institution.

Against an excellent quantity of over Rs 28 crore (together with curiosity), a mere Rs 1,854 was recovered from the 2 accounts after they grew to become NPA, the financial institution mentioned.

In July this yr, the CBI’s anti-corruption bureau unit in Shimla registered two FIRs in opposition to the proprietors of the companies for dishonest, felony conspiracy and different suspected offences underneath sections 120B and 420 of the IPC and related sections of the Prevention of Corruption Act.

‘Unknown public servants’ booked

The company additionally booked “unknown public servants” and informed an area court docket that it’s attempting to determine if an insider within the financial institution helped the accused in elevating the loans. The financial institution too informed the CBI that it’s initiating common departmental motion (RDA) in opposition to its officers discovered accountable throughout the examination of the alleged irregularities.

Last month, a court docket rejected the anticipatory bail utility of one of many accused, a everlasting resident of Canada, observing that the alleged lack of public cash has in the end affected “the poor members of the society”.

R Okay Gaur, a spokesperson of the CBI, mentioned that additional investigation of the case is underway however didn’t say if any of the accused have joined the investigation or if the connivance of any financial institution official within the alleged fraud has been ascertained up to now.

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