A loan fraud case of Rs.20 crore has been reported in SIDBI. The Central Bureau of Investigation (CBI) has registered a case against an electrical goods manufacturer and others, including unknown public servants, for allegedly defrauding the Small Industries Development Bank of India (SIDBI) of nearly ₹20 crore by diverting loan funds sanctioned for setting up a new unit.
The SIDBI had sanctioned loan to a firm for setting up a new business unit but the promoters of the firm diverted the funds. Consequently, SIDBI filed complaint with CBI and the investigation started.
The agency booked Ujwal Electric Motors Pvt Ltd and others on Saturday based on a complaint from SIDBI, which alleged that the company misappropriated funds from a ₹20-crore loan sanctioned in 2015 for establishing a manufacturing unit in Ahilyanagar.
According to the complaint, the company caused a wrongful loss of ₹20 crore to the bank, the outstanding credit dues excluding interest, by allegedly diverting loan funds and committing criminal breach of trust.
The loan account was classified as a non-performing asset (NPA) in May 2017 after the borrower failed to repay the dues. Despite repeated communications from the bank, the outstanding amount remained unpaid, the complaint alleged.
SIDBI declared the account as fraud in April 2018 and reported the matter to the Reserve Bank of India, following which a complaint was lodged with the CBI.
The bank has alleged that the company carried out dubious transactions with associated entities, raised fake bills and invoices, and suppressed material information while seeking financial assistance.
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