INDIA. Mumbai: The Central Bureau of Investigation (CBI) on Thursday conducted searches at multiple locations across the country at the premises of six firms for possible duping of banks through loan defaults and unauthorized diversion of funds.
The complainants: Canara Bank, Punjab National Bank, IDBI Bank Ltd, EXIM Bank
In the first case, the raids were conducted on the premises of PSL Limited (PSL) in Andheri East, in North West Mumbai. based on a complaint from the Canara Bank, the Punjab National Bank, IDBI Bank Ltd., and the EXIM Bank. According to an official statement, the CBI filed four FIRs against PSL and its directors on December 30, 2022, for allegedly defrauding the aforementioned banks to the tune of Rs. 217.37 crores.
As per the complaints, the firm that deals with manufacturing and coating pipes had taken the loans but diverted the money to its subsidiaries. The alleged fraud occurred between 2010 and 2015. The CBI raided eight places in Mumbai and one each in Delhi, Noida, Kutch, and Daman. The CBI raided D N Sehgal’s office in Andheri, Mumbai, and seized $ 90,413 and Rs. 1.99 crores, as well as incriminating documents and articles.
The complainants: a consortium of 17 banks headed by BOB
In another case, the CBI raided the offices of Prathibha Industries Limited (PIL) (Navi Mumbai) in Mumbai and Thane. The probe agency registered the FIR on January 10 against PIL and its four directors based on a complaint filed by the Bank of Baroda. The complainant alleged that the company, which was into the development of infrastructure projects, had taken a loan for Rs. 4,957.31 crores from a consortium of 17 banks headed by the Bank of Baroda but failed to repay the amount.
During its investigation, the CBI learned that the accused firm had diverted the borrowed money to related parties and subsidiaries between 2014 and 2017. Besides, it had made false sales and purchase transactions to increase its turnover. The company’s account was classified as a non-performing asset (NPA) on December 31, 2017.
The complainants: a consortium of 10 banks headed by PNB
In the third case, offices of the Vadraj Cement Limited (Gujarat) and four of its directors at three locations, including Mumbai and Jaipur, were raided for defrauding a consortium of 10 banks led by the Punjab National Bank (PNB) to the tune of Rs. 1,688.41 crores.
The accused company had approached PNB and other consortium members about setting up a cement factory at Mora in Surat and Thumdi in Kutch, both in Gujarat. However, it allegedly diverted the credit money to related parties and subsidiaries. The alleged fraud occurred between 2009 and 2018. The company’s account was declared NPA on March 20, 2018.
In connection with loan repayment default, searches were also conducted at the offices of three other private firms. The duped banks are Oriental Bank of Commerce (now merged with PNB): Rs 51.90 crore; IDBI Bank-Rs 29.06 crore; and Export-Import Bank of India (EXIM Bank): Rs 105.92 crore.
Also Read: CBI Books Wadhawans in a Fresh Rs 140 Crore Bank Fraud Case
