The Central Bureau of Investigation (CBI) has registered a case of criminal conspiracy, cheating and criminal misconduct against a Mumbai-based private company and its two directors for allegedly causing wrongful loss of Rs. 324.64 crore to Bank of Baroda (e-Dena Bank) and four consortium banks. The consortium included Bank of Baroda (E-Dena Bank), State Bank of India, Indian Bank (e-Allahabad Bank), Punjab National Bank (e-United Bank) and J&K Bank.
Rajesh Bairagi, assistant general manager, Bank of Baroda, filed a complaint against the company, which is in the steel business, on March 23, according to the CBI.
The complaint said a fraud of Rs 324.64 crore (as on September 9, 2019) has been perpetrated by the borrowing company and its directors between 2015 and 2016 in conspiracy with other unknown public servants, persons with an intention to defraud, cheat the banks.
The fraud was committed by way of cheating, inflating the figures of sales and purchase through transactions that were not genuine, transactions with related parties, non-routing of sale proceeds in consortium bank accounts, and siphoning of funds, etc.
“The bank got an investigative audit carried out of the company’s account. It revealed that the company had misled and cheated the bank by inflating the figures of sales and purchase through transactions that are not genuine trade transactions. Allegedly the said company and its directors have caused wrongful loss of Rs.324.64 crore to the lending banks for corresponding wrongful gain to themselves,” the CBI stated in its FIR.
The CBI will contact the banks to seek documents pertaining to the case and decide the further course of action, the sources said.