CBI books Shiv Vani Oil, two promoters for defrauding PNB of Rs 253 cr

Banks, NBFCs are estimated to have given Rs 3,587 crore to company accused of criminal conspiracy, cheating

The Central Bureau of Investigation (CBI) has filed a complaint against Shiv Vani Oil and Gas (SVOGL) and its promoters Padam Singhee and Prem Chimanlal Singhee for defrauding Rs 252.61 crore from Punjab National Bank (PNB).

According to the CBI's first information report (FIR), PNB had lodged a complaint against them for criminal conspiracy, cheating, criminal breach of trust and criminal misconduct.

Padam Singhee is the managing director of New Delhi-headquartered SVOGL while Prem Chimanlal Singhee is a director. They are brothers.

The accounts of SVOGL were declared fraud by PNB and reported to the Reserve Bank of India (RBI) on August 15, 2019. The loan account availed by the firm was classified as non-performing assets (NPA) on June 30, 2016 by Central Statuary Auditor with effect from December 26, 2013, a CBI statement said.

Searches were conducted at three locations in Delhi at the premises of borrower company and its directors, the CBI added.

The company was availing credit facilities under a consortium of 16 banks and non-banking financial companies (NBFCs). The affected banks are ICICI Bank, State Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, Bank of India, Indian Overseas Bank, Exim Bank, Andhra Bank, United Bank of India, Corporation Bank, UCO Bank, Central Bank of India, IndusInd Bank, Union Bank of India and Yes Bank. The NBFCs that are part of the consortium are L&T Infra Finance Company, IFCI, Tata Capital Financial Services and LIC of India.

“The total limit exposure of consortium is around Rs 3,587 crore with our (PNB) bank’s share of 7.45 per cent. ICICI which was the leader with 20 per cent share has sold its share to Edelweiss ARC and now SBI with 12.64 per cent share is the new largest public sector lender in this consortium,” the complaint from PNB said.

SVOGL Oil Gas & Energy was incorporated by Prem Singhee and Padam Singhee in 1989 as onshore service providers to the oil and gas industry in India. Initially, it started as a sub-contractor, but in post 1991 period, it established itself as a full-fledged operator, working directly for Oil and Natural Gas Corporation (ONGC) and Oil India (OIL).