CBI searches 187 locations across the country in cases of bank fraud

LUDHIANA: In a large-scale operation against bank fraud, the central investigation bureau () conducted searches on Tuesday in 187 locations across the country. Search locations included Andhra Pradesh, Chandigarh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and Dadra and Nagar Haveli.

CBI has registered 42 cases of bank fraud involving approximately Rs7.2 billion rupees. The banks involved (including consortium members) are Andhra Bank, Oriental Bank of Commerce, Indian Overseas Bank, SBI, Canara Bank, Dena Bank, Punjab and Sind Bank, Punjab National Bank, Central Bank of India, Union Bank of India , IDBI Bank , Baroda Bank , Bank of Maharashtra and Bank of India.

The places where the searches were conducted were: Delhi, Gurgaon, Chandigarh, Ludhiana, Dehradun, Noida, Baramati, Mumbai, Thane, Silvassa, Kalyan, Amritsar, Faridabad, Bengaluru, Tirupur, Chennai, Madurai, Quilon, Cochin, Bhavnagar, Surat . , Ahmedabad, Kanpur, Ghaziabad, Varanasi, Chandauli, Bhatinda, Gurdaspur, Morena, Kolkata, Patna, Krishna, Hyderabad and Bhopal. Of 42 cases, there are 4 cases of more than Rs1000 million and 11 cases of fraud of Rs100 million to Rs1000 million.

Registered outstanding cases include a case registered against a private company based in Malad (East) Mumbai/Bhopal. The case was registered against its 5 directors/additional director/guarantors and unknown public servants under the accusation that they were engaged in the mass trade of agricultural products, in collusion with unknown bank officials. They also fraudulently used the credit lines of Rs6 billion rupees of SBI, Bhopal when resorting to the falsification of accounts and the falsification of documents, such as bill of lading, falsely showing the movement of goods, etc. The company allegedly diverted the funds and failed to meet the payment of fees and caused the loss of Rs1266.63 rupees to the bank.

One more case has been registered against two private companies based in New Delhi; your president; Managing Director; director and other public servants/unknown private persons. It was alleged that the directors and guarantors of said Delhi-based company engaged in the acquisition and construction of engineering, in collusion with unknown bank officials and others fraudulently resorted to the credit lines of Rs1290 crore of SBI, New Delhi, using falsification of accounts and falsification of documents. The company allegedly diverted the funds and failed to pay the fees and caused the loss of Rs1100.73 rupees to the bank.

Another case has been registered against Chennai based private company; its promoter; managing director and 7 other office bearers including chief accounts officer and unknown public servants/unknown others on the complaint of IDBI Bank Ltd. on behalf of other consortium member Banks viz. Allahabad Bank, Indian Overseas Bank, , State Bank of India, Dena Bank (now Baroda Bank ), Bank of Maharashtra, Bank of India, Baroda Bank , Oriental Bank of Commerce, UCO Bank and Canara Bank for cheating and causing loss of Rs1083.14 crore to the banks.

It was alleged that the accused persons have conspired with each other and cheated IDBI Bank and other consortium member banks in the matter of availing and utilization of the credit facilities sanctioned. In pursuance of the conspiracy, the company has manipulated their books of accounts by making fictitious entries based on false documents and submitted false and manipulated financial statements to the consortium of banks for availing the credit facilities. The sanctioned amounts were utilized/diverted for purposes other than for which the same were released by way of fictitious transactions.

Yet another case has been registered against chairman and directors of a Varanasi based private company and unknown public servants on the allegations of submitting wrong stock statement and balance sheet to induce Baroda Bank for fraudulent and dishonest availment/sanction of Bank loan. The company has allegedly defrauded Baroda Bank to the tune of Rs518.44 crore as on December 31, 2018. It was further alleged that the said company has also defrauded Punjab National Bank to the tune of Rs517.99 crore adopting the same modus-operandi. During searches, incriminating documents have been recovered so far. Searches are still in progress.