Central Bank cheated of Rs. 436 cr

Case of criminal conspiracy, cheating and Prevention of Corruption Act has been registered against Electrotherm (India) Ltd

The Central Bureau of Investigation (CBI) has registered a case against Electrotherm (India) Ltd., an Ahmedabad based engineering firm, for allegedly cheating the Central Bank of India to the tune of Rs 436 crore.

The agency said a case of criminal conspiracy, cheating and prevention of corruption act has been registered against the company and unknown bank official.

"The company requested for credit to enable them to supply steel and iron to other firm in Tanzania. The company did not submit any proof of delivery of the material and defaulted on the loans taken," the agency said in a press statement.

"The bank had to make payment when the company failed to pay the counterparty. The company had allegedly made false representations to induce the bank to extend credit facilities to them," the agency said.

After registering the case, the CBI conducted searched at nine places in Ahmedabad, Gandhinagar, Vadodara and Kutch. Electrotherm could not be reached for an immediate comment.