Two Maharashtra businessmen arrested for duping IFCI

Delhi Police has arrested two businessmen from Maharashtra for allegedly duping Industrial Finance Corporation of India (IFCI) of Rs 5 crore by obtaining working capital loan by fraudulent means.
"The accused were arrested from Maharashtra and brought to Delhi this week," a senior Delhi Police official said, adding they have been booked under various sections of IPC including criminal conspiracy, cheating, forgery and criminal breach of trust.
Ashok Kumar Rathi (51) of M/s Maven Industries Ltd and Vijay B Shethia (47) of M/s Jayesh Oil Trade Private Ltd, both directors, were apprehended following a complaint registered on August 30, 2012 by Tapabarata Mohitra, a senior associate vice-president of IFCI Ltd, with Economic Offences Wing of Delhi Police.

Mohitra, in the compliant, stated that Maven Industries Ltd had approached the IFCI for loan. Rathi, told the bank that he had to supply soya refined oil to Jayesh Oil Trade Pvt Ltd and needed capital. The corporation provided loan of Rs 5 crore. But the company had submitted forged bills of the purported supply of soya products and soya refined oil worth Rs 5.90 crore to Jayesh Oil Trade Pvt Ltd.
A few months after the corporation disbursed the loan, they found that the invoices and bills submitted by Rathi were fake and false representations by both the companies.

During interrogation, Rathi admitted that the invoices given to the corporation to obtain loan were forged and fabricated. Shethia too said he had submitted forged and fabricated invoices.