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Winsome diamonds fraud case: CBI charge sheets 2 ex-CMDs of Canara bank

The company also failed to make the payment for the gold imported on the strength of guarantees

Canara Bank alleges Rs 5 bn fraud by Kolkata-based R P Infosystems

Canara Bank said it was filing a complaint after it was authorised by a consortium of lenders

Press Trust of India New Delhi
The CBI has filed a charge sheet against two former chairman cum managing directors of the Canara Bank in connection with alleged loan default of Rs 1.46 billion by Jatin Mehta of Winsome Diamonds and has also sought a Red Corner Notice against the billionaire jeweller.
Mehta is absconding and believed to have got St Kitts passport, sources said.
The agency has filed the charge sheet against 21 accused which includes Mehta, his company, his wife besides 15 public servants, CBI Spokesperson Abhishek Dayal said.
The public servants charge sheeted by the agency includes former CMDs Avinash Chander Mahajan and Sunder Rajan Raman. Former executive director of the bank, Archana Bhargava, has also been named by the agency in its charge sheet filed in Special CBI court, Mumbai, he said.

The agency has alleged the company purchased gold from three bullion banks abroad - The Bank of Nova Scotia, Standard Bank and Standard Chartered Bank - on the basis of guarantees from the Indian bank.
Later, this gold was processed and sent to 13 buyers in the UAE, the CBI stated.
The company also failed to make the payment for the gold imported on the strength of guarantees, the agency said.
"In this regard, the company has taken plea that export proceeds have not been received from foreign buyers (which) resulted in invoking the SBLCs (guarantees) by bullion banks that cost wrongful loss of Rs 14.635 million to Canara Bank.
 

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First Published: Jun 28 2018 | 6:58 PM IST

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