The Central Bureau of Investigation (CBI) is investigating two companies for causing losses of Rs 520 crore to the
In the first case, the agency’s
The consortium had lent credit to the engineering firm between 2013 and 2017. The agency will examine allegations that the borrower firm diverted the funds, manipulated books of accounts with an objective to defraud the banks and to gain unlawfully at the cost of the banks, CBI sources said.
“The irregularities came to light when a special investigative audit and a forensic audit were conducted. The borrower firm’s account was declared a non-performing asset (Doubtful-1) with retrospective effect on account of non-compliance,” an agency source said. “The borrower’s account was declared a fraud by the Fraud Identification Committee, SBI, in January 2019.”
Apart from the SBI, the consortium’s other banks also classified the loan account as NPA / fraud during November 2014 to January this year, the source said.
In the second case, the CBI received a written complaint from an officer of BoB’s Ahmedabad branch against a plastic products-manufacturing firm for allegedly causing the bank a loss of around Rs 72 crore to e-Dena Bank (now Bank of Baroda). The concerned bank had lent credits to the borrower firm during 2017 to 2019. “The loan account was declared an NPA in July 2019 and was subsequently also reported as a fraud account in January this year as per the bank’s complaint,” another agency officer said.
“A forensic account was conducted on the loan account that revealed alleged diversion of funds to associate firms and wrong reporting,” the source said. “It is also being examined if unauthorised investments from the bank’s funds were made and assets were purchased too.”
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