Bank fraud case: CBI raids various locations of Delhi-based private company

The Central Bureau of Investigation (CBI) on Saturday conducted searches at various locations including Delhi-NCR, Chandigarh, Kolkata and Orissa associated with a New Delhi-based Private Company, its directors, promoters and their associates in a bank fraud case.

The investigative agency had registered a case against the private company, its directors, staff, unknown public servants and other private persons, read a statement.

In the complaint, it was alleged that the said private company through its directors and staff fraudulently diverted Rs 2348 crore (approximately) from the loan account of Punjab National Bank (IFB New Delhi and IFB Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (IFB Kolkata) into the accounts of various companies and shell companies without any obvious purpose and thereby 'misused' the funds.

It was further alleged that the said company availed various loan facilities from 33 banks and financial institutions from 2007 to 2014 to the tune of Rs 47,204 crore (approximately) and defaulted on repayments. Subsequently, lead bank PNB declared the account as NPA followed by other banks and financial institutions, the CBI said.

"It was also alleged that the accused entered into a criminal conspiracy among themselves and with unknown public servants of banks and others to cheat banks/ financial institutions/ government exchequer. In furtherance of the said criminal conspiracy, the accused dishonestly and fraudulently diverted huge amount of bank funds through companies/shell companies/ entities, etc. and deliberately defaulted in repayment and also claimed inadmissible CENVAT credit etc," the statement read.

It has been further alleged that the accused used the bank funds for purposes other than sanctioned by the bank, by committing forgery for the purpose of cheating, used forged documents and falsified the accounts causing loss to the tune of Rs 2348 crore (approximately) to the lending banks, financial institutions, and government exchequer.

During searches, various documents pertaining to the case have been recovered. An investigation is currently underway.