Rs 4.31 Crore Fraud in Bank of Baroda in Indore, EOW Registers Case against Bank Staff and Loan Borrower
A significant case of financial fraud amounting to ₹4.31 crore has surfaced in Indore, involving bank employees and a group of firms. The Economic Offenses Wing (EOW) has registered a case and initiated an investigation into the matter, which dates back nearly a decade.
The fraud came to light following a complaint by Shailesh Kumar Parikh, Assistant General Manager of Bank of Baroda. According to the complaint, loans totaling ₹3.48 crore were sanctioned to 10 firms based on fake documents and addresses. The loans, intended for business purposes, were misused, and the borrowers failed to repay the bank. With accrued interest, the total loss to the bank rose to ₹4.31 crore.
Details of the Case
EOW registered the case on December 12, and the revelations were made public on Wednesday. Investigations have shown that between September 2015 and December 2015, five loans were disbursed, followed by eight more loans in 2017. The firms involved include Nakoda Bhairav Garments, My Choice Dresses, Mahavir Readymade Garments, Rachna Foods, Madhur Industries, Chaitanya Enterprises, Arihant Traders, Shri Radhe Foods, DR Enterprises, and Bhavana Apparels.
Key lapses during the loan approval process were identified:
- Document Verification: The documents submitted by the firms were not properly checked.
- Physical Verification: Addresses of the firms were not physically verified.
- Cash Transactions: Loan payments were made in cash, violating banking rules.
- Fraudulent Balance Sheets: The firms submitted falsified balance sheets and audit reports.
The bank’s then-manager, Mukesh Pandya, who is now deceased, allegedly played a central role in preparing false reports to facilitate the fraudulent loans.
Involvement of Fake CA and Conspirators
The FIR also names Tejas Sutaria, who has been identified as a fake Chartered Accountant (CA). The audit reports of the firms, presented fraudulently, were key to securing the loans.
In one instance, ₹7.99 lakh was fraudulently transferred from Triveni Enterprises, owned by Kaushalendra Sharma, to Prakash Industries, owned by Prakashchandra Saini. Another transfer of ₹1.64 lakh was made from Triveni Enterprises to Madhur Industries, owned by Rachna Saini.
Manipulated Financial Statements
Witness statements revealed significant manipulations in the financial records of the firms. For instance, the 2014-15 balance sheet of Madhur Industries showed an inflated capital of ₹50.67 lakh, up from ₹44.26 lakh, while liabilities were drastically reduced from ₹30.58 lakh to ₹8.54 lakh.
Legal Action and Accused Parties
EOW has registered cases under IPC sections 420 (cheating), 467 (forgery of valuable security), 468 (forgery for the purpose of cheating), 471 (using forged documents as genuine), 120(B) (criminal conspiracy), and Section 7 of the Prevention of Corruption Act, 1988.
The accused include:
- Bank employees: Swapnil Purohit, Shirish Satarkar, and Ruchka Kailotra.
- Firm directors: Prakash Chandra Saini, Rachna Saini, Parul Jain, Amit Kumar Dubey, Reenu Jain, Richpal Saini, Rajnikant, Hemendra Singh Gehlot, Ravishankar Ahirwar, and others.
- Fake CA: Tejas Sutaria.
The fraudulent transactions occurred between June 28, 2014, and December 31, 2017. EOW is continuing its investigation to uncover further details and hold all responsible parties accountable.
