The Central Bureau of Investigation on Monday registered a case based on a complaint by State Bank of India that a private company and its directors caused a loss of ₹1,438.45 crores to the bank and four other consortium member banks.
CBI said, “It was alleged that the private/borrower company (engaged in the business of ferrous and non-ferrous metals) and its promoter directors along with unknown entities caused damages to SBI and the consortium member banks (Central Bank of India, Indian). By diverting/siphoning funds by Overseas Bank, Oriental Bank of Commerce (now Punjab National Bank and Bank of Maharashtra), showing sales to foreign dormant entities, manipulating books of accounts, etc.
It was also alleged that the accused misappropriated bank funds by giving advances to entities that had not carried on business during the last five to nine years and granted loans and advances to their respective parties. It was further alleged that the accused had violated the terms and conditions of the sanction.
It was also claimed that the company had lent money without the approval of the consortium banks to siphon off the funds and knowingly enter into non-genuine transactions with the related parties to renew/enhance their credit facilities from the lending banks. Can go It was also claimed that the accused misappropriated the value of the closing stock as well as the immovable properties and thereby defrauded the banks.