The Central Bureau of Investigation (CBI) has initiated legal proceedings against a logistics company and its directors based in a city. They are accused of engaging in criminal conspiracy, cheating, and criminal misconduct, allegedly defrauding a group of banks of ₹173.18 crore.
As per the CBI, on September 14, 2022, they received a written complaint from Rakesh Kumer Garg, Deputy General Manager of the Asset Recovery Management Branch of Bank of India in Andheri. The complaint alleges that the borrower company, along with its directors, unidentified public servants, and unknown individuals, conspired between 2013 and 2016 to deceive Bank of India and other consortium banks, resulting in a loss of ₹173.18 crore.
The agency officials stated, “The complaint alleges that the company availed various credit facilities worth ₹167.50 crore from the consortium of banks led by Bank of India. It is further alleged that the company misappropriated funds by transferring them to their sister concerns, which violated the terms of the loan agreement.” The bank’s complaint also asserts that the company engaged in round-tripping of funds with at least seven other companies. Despite the borrower’s financial difficulties, the promoters and directors received substantial remuneration, indicating questionable intentions, as stated in the bank’s complaint to the CBI.
According to the agency’s First Information Report (FIR), “The company made multiple payments to unrelated parties. Furthermore, the borrower provided the bank with different lists of debtors while conducting transactions with other debtors. The company also conducted transactions with banks outside the consortium without obtaining permission from the consortium members. The accused individuals unlawfully enriched themselves and obtained illegal gains, resulting in a loss of ₹173.18 crore to the consortium banks.”
Therefore, the CBI has registered a case against the logistics company and its directors for criminal conspiracy, cheating, and criminal misconduct, based on the allegations made in the complaint filed by Bank of India.
