The Central Bureau of Investigation (CBI) on May 11 registered a case against seven persons, including directors or guarantors of two private companies located in Raigad and Mumbai, for allegedly duping State Bank of India (SBI) and five other consortium member banks to the tune of ₹1017.93 crore.
Those named in the FIR also include unidentified public servants. According to a complaint filed by the SBI, the accused M/s Loha Ispaat Ltd and M/s Loha Investments private Limited entered into a conspiracy between 2012 to 2017 to cheat the SBI and other five consortium member banks — Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank and Bank of Maharashtra — by availing Working Capital Limit, Term Loan and NFB limits to the tune of ₹812.07 crore.
It was further alleged that the accused in pursuance of the conspiracy, cheated the SBI and other the five other banks by way of fictitious sales or purchase transactions and fudging of accounts and also siphoned off the funds resulting into non-payment of outstanding loans to the tune of ₹1017.93 crore.
The CBI has registered a case under Sections 120-B, 420, 467, 468, 471, 120-A of the Indian Penal Code (IPC) and Section 13(2) of the Prevention of Corruption Act, 1988, against the accused. The investigation is ongoing.
The case is a major breakthrough for the CBI, which has been trying to crack down on bank frauds in recent years. The agency has registered several high-profile cases in the past few months, including the ₹22,842 crore Punjab National Bank scam and the ₹14,000 crore ABG Shipyard scam.
The CBI’s action against the accused in the present case is a clear message that no one is above the law and that the agency will not hesitate to take action against those who indulge in financial irregularities.