Hyderabad: The sleuths of the Central Bureau of Investigation (CBI) booked Hyderabad-based RE Cables and Conductors Private Limited in an alleged Rs. 74.83 crore bank loan fraud on 20 December.
The investigation agency was acting upon a complaint by the State Bank of India’s commercial branch located in Secunderabad. The CBI found that the company, represented by its managing director Hitesh R. Jain and director Ramesh Otarmal Jain, was involved in a criminal conspiracy with unknown public servants to cheat the bank by abusing the official position of the latter.
It is alleged that the accused borrowers dishonestly and fraudulently manipulated the books of accounts by overstating their sales, purchases, and profits by misrepresentation and falsification of records and through forged and fabricated documents. They then used the same to avail credit facilities. The bank also alleged that the accused misappropriated the funds of the SBI to the accounts of various other parties without doing genuine business.
The investigating agency also said that Hitesh and Ramesh fraudulently opened Letter of Credits (LCs) in the name of other beneficiaries for their own gain. The LCs were devolved and caused wrongful loss to the bank, it further said. The act by these persons caused the bank loss to the tune of Rs. 74.83 crore.
The CBI has booked them under various sections of the IPC and the Prevention of Corruption Act 1988. The SBI filed the complaint on 11 December and an FIR was filed on 15 December.
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