Over Rs.29 crore fraud has been reported at Indian Bank.
The Central Bureau of Investigation (CBI) has booked a private firm and its directors in a bank fraud case of ₹29.97 crore. The case is related to unpaid loans that caused a loss to the public-sector Indian Bank during 2017–2018.
The CBI’s Mumbai unit registered an FIR on April 2 against the firm, Signet PP Ltd, its directors, and some unknown public servants. The case has been filed under the Prevention of Corruption Act and sections of the Indian Penal Code related to criminal conspiracy, cheating, and misconduct by public servants.
The action was taken based on a complaint by the Deputy General Manager of the Stressed Assets Management Branch of Indian Bank in Mumbai.
Indian Bank declared the firm’s loan account as a Non-Performing Asset (NPA) on May 21, 2018. Later, on March 24, 2020, the bank reported the account as a “fraud” to the Reserve Bank of India.
In its complaint, the bank said that the firm and three of its directors, along with unknown public servants and private persons, worked together to fraudulently take credit facilities. This caused a loss of ₹29.97 crore to the bank as of May 21, 2018. The firm is also accused of submitting incorrect stock and book debt statements.
The bank further alleged that the firm used the loan money for purposes other than what it was approved for. This means the money was diverted and used for other purposes. The CBI is investigating the case and more details will be released soon.
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