CBI books three Mumbai companies for banking fraud as SBI loses Rs 1.36 bn

Searches were conducted at 17 places in Mumbai, Raigad, Malegaon, Amravati, according to a CBI official

The CBI has registered three separate cases of banking fraud against three Mumbai-based companies for an alleged banking fraud that caused a cumulative loss of over Rs 1.36 billion to State Bank of India, officials said here today.

One of the cases is against Top Worth Pipes and Tubes Pvt. Ltd, its Directors Abhay Narendra Lodha, Shishir Shivaji Hiray, Harshraj Shantilal Bagmar, the then SBI officials AGM ThyagarajuInamanamelluri, Deputy Manager Vilas Narhar Ahirrao, Deputy Manager, Madhura Mangesh Sawant for allegedly causing a loss of Rs 568.1 million to the bank, the officials said.

The second case was registered against Maheep Marketing Pvt. Ltd, its Directors Gajendra Sandim, Hemant Sanghvi and the three SBI officials for allegedly causing loss of Rs 499.9 million, they said.

The third case is against Harsh Steel Trade Pvt Ltd and its Directors Chetan Jitendra Mehta and Mahadev Ramchandra Shringare, the then officials of the SBI, AGM Jagdish Kulkarni and Deputy Manager Sadanand Girkar for allegedly causing loss of Rs 301.3 million.

"It was alleged that the said private companies enjoyed bill discounting facilities against the Letters of Credit issued by State Bank of India, D N Road branch and PM Road Branch, Fort, Mumbai."

"However, these bills were returned unpaid by the concerned banks, since it was observed that there were instances of diversion of funds and misrepresentations by the companies," CBI Spokesperson Abhishek Dayal said.

He said the internal enquiry by the bank also revealed irregularities such as raising multiple invoices, false lorry receipts showing incorrect vehicle registration numbers and vehicles other then heavy goods transport vehicles being shown as means of transportation.

Dayal said searches were conducted at 17 places in Mumbai, Raigad, Malegaon, Amravati including office and residential premises of the accused which led to recovery of "incriminating documents".