INDIA. Mumbai: The Central Bureau of Investigation (CBI) has initiated legal action against an Ahmedabad-based firm accused of causing a significant loss of Rs. 46.79 crore to Union Bank of India through deceptive practices, including the issuance of counterfeit invoices and the diversion of funds.
The FIR (RCO292023A0014 dated August 03) has been filed under sections 429, 120-B of the Indian Penal Code and sections 13(2) and 12(1)(D) of the Prevention of Corruption Act 1988.
The case targets Greendiamz Biotech Private Limited and its directors, namely Champat Rikhabchand Sanghavi, Deepak Champat Sanghavi, and Ashwin R Shah. The allegations stem from a complaint lodged by Lokesh Sharan, Assistant General Manager of Union Bank’s Stressed Assets Management branch.
According to the complaint, the accused individuals orchestrated a scheme to divert and siphon off funds by falsifying information and documents, committing acts of criminal breach of trust, cheating, and misappropriation of public funds in collaboration with each other.
Conducting searches at various locations in Ahmedabad, including the accused’s premises and the borrower company, yielded incriminating documents, as stated by the CBI.
The accused initially established a company named “True Green” on May 8, 2009, with an authorized share capital of Rs 50 lakh, aiming to manufacture biodegradable plastic products in Bavla, Gujarat. This entity transitioned into a public limited company on January 18, 2011.
The firm imported plastic granules from M/s Limagrain Cereal Ingredients in Germany and machinery from Taiwan in 2009.
It marketed its offerings under the label “Biolice,” promoting them as 100% biodegradable and compostable.
Securing a letter of credit for Rs 725 lakh, a term loan of Rs 1285 lakh, and other facilities from Union Bank, the company asserted commencing production on September 30, 2009.
However, commercial production only commenced in January 2011 and was inconsistent.
With insufficient turnover, it was classified as a Non-Performing Asset on December 31, 2013. Meanwhile, the outstanding dues owed to Union Bank escalated to Rs 46.79 crore.
Also Read: CBI Files Second Charge Sheet against Five Accused in Delhi Excise Policy Scam
