Bank Fraud: 2 Companies cheat banks of Rs 70 crore, CBI files cases

The Central Bureau of Investigation has registered a case against two private firms and their officials for allegedly cheating banks to the tune of Rs 70 crore.

New Delhi: The Central Bureau of Investigation on Friday registered a case against two private firms and their officials for allegedly cheating banks to the tune of Rs 70 crore. A CBI official said that a case has been registered against a Hyderabad (Telangana) based private company, its two Directors, a Guarantor, a Nandyal based private firm and a person.

The official said that the private company based in Hyderabad, had in connivance with others, availed loans from Bank of Baroda, Banjara Hills Branch and later diverted the money for some other use and also for personal gains.

"The accused submitted false stock statements with the bank for concealing their irregularities falsified their account book and willfully defaulted in repayments. By furnishing fake documents, the accused caused a loss of Rs 61 crore to the bank," the official said.

The official said that after registering a case, they conducted raids at six different places at Hyderabad, Nandyal, Kurnool and were able to recover incriminating documents against the alleged accused.

Another case was registered against six accused, including three private companies, based in Hyderabad.

He said that the company had availed secured overdraft facility of Rs 4 crore and LC of Rs 2 crore with a total limit of Rs 6 crore in 2016 for business purposes from the Union Bank of India.

It was further alleged that after availing of the loan, the company committed default in its repayment.

It was a violation of the terms of loan agreement and it's account slipped into Non-Performing Assets(NPA) in 2018. Later, the bank declared them fraud.

Later, it was found that borrowers had diverted and misappropriated the funds and also mortgaged disputed, unidentified property with an intention to cheat bank. Thus, they caused a loss of Rs 8 crore to the bank. Also Read: Post Office Customers, Alert: India Post Payments Bank revises cash withdrawal, deposit charges

The CBI conducted raids at several locations and have recovered some evidence against the accused. Also Read: Elon Musk sells Tesla shares worth $10 billion, will he remain the richest person in the world?