The Central Bureau of Investigation (CBI) recently arrested Surender Kumar, a key accused in a loan fraud case involving the Bank of Baroda and Standard Chartered Bank. The fraud, which amounts to Rs 21 crore, involved loans that were allegedly transferred using forged Letters of Credit (LC). Kumar had been declared a “proclaimed offender” by a special court in August 2023 after evading authorities and failing to appear in court.
What is the Case About?
According to the CBI, Surender Kumar, in collaboration with the promoters of the borrower company, was involved in diverting loan funds from both Bank of Baroda and Standard Chartered Bank. The alleged fraud took place between 2009 and 2017, during which forged documents were used to transfer the loan amounts to two companies owned by Kumar. The CBI has been investigating this case since March 2021 after a formal complaint was filed by the Assistant General Manager (AGM) of the Bank of Baroda’s Stressed Asset Management Branch (SAMB).
The complaint accused the directors and guarantors of a private borrower company, along with some unknown public officials, of being involved in fraudulent activities that led to the loan fraud.
How the Investigation Unfolded?
Following the complaint, the CBI filed a charge sheet on December 12, 2022, against eight individuals, including Surender Kumar. The charge sheet outlined the fraudulent actions and the roles of those involved. Despite being summoned multiple times, Kumar refused to cooperate with the investigation and failed to appear for the trial proceedings. This led to the court declaring him a “proclaimed offender” on August 25, 2023, and a standing warrant was issued for his arrest by the Special Judicial Magistrate of CBI, Ghaziabad.
The Arrest and Judicial Custody
Surender Kumar was finally apprehended by the CBI in Kamla Nagar. He was produced before the Special Judicial Magistrate, where he was remanded to judicial custody until September 27, 2024. This arrest comes as part of ongoing efforts to bring to justice those responsible for the Rs 21 crore fraud.
In a related development, another proclaimed offender in the same case, Mohit Shah, was arrested by the CBI on July 24, 2024, and remains in judicial custody.
Conclusion
This case highlights the significant efforts by the CBI to crack down on large-scale financial frauds involving public and private institutions. The arrest of Surender Kumar marks a key step forward in the investigation of this Rs 21 crore loan fraud, and the judicial process will continue to unfold as authorities aim to recover the diverted funds and hold those responsible accountable.
