Massive bank scam: CBI books private firm, others in Rs 1528 crore fraud case involving 16 banks

New Delhi: In a massive scam case, the Central Bureau of Investigation (CBI) has booked a Delhi-based private firm Indian Technomach for allegedly defrauding 16 banks of funds to the tune of Rs 1528 crore.

The agency said that the company, its CMD, other private individuals and public servants conspired to defraud a consortium of 16 banks led by Bank of India.

“The Central Bureau of Investigation has registered a case against a private company M/s Indian Technomach Co. Ltd based at Delhi & having its industrial unit in Himachal Pradesh and others including Rakesh Kr Sharma, Promoter & CMD; Vinay Kr Sharma, Director/Guarantor & two Corporate Guarantors, M/s Gurupath Merchandise Ltd.,(Corporate Guarantor), Kolkata & M/s Thunder Traders Ltd. (Corporate Guarantor), Kolkata; Unknown public servant(s)/unknown others on the allegations that the accused conspired with each other to defraud the banks and caused loss of Rs.1528.05 crore (approx) to the consortium of 16 banks led by Bank of India,” the CBI said in a statement.

The consortium banks included Bank of India, Union Bank of India, Andhra Bank, Punjab & Sind Bank, Indian Overseas Bank, State Bank of Hyderabad, Central Bank of India, Corporation Bank, HDFC Bank Limited, Oriental Bank of Commerce, Saraswat Co-operative Bank, State Bank of Patiala, UCO Bank, Allahabad Bank, Standard Chartered Bank and DBS.

The CBI alleged that the accused, who were engaged in manufacturing ferrous and non-ferrous metal, obtained loans from the consortium of banks from 2008 to 2013 but later diverted the funds causing a loss of Rs 1528.05 crore.

The account was classified as NPA in the books of accounts of Bank of India in March 2014. It was red-flagged by the bank as advised by RBI in May 2015 and then declared fraud in February 2016.

The investigative agency conducted searches at various premises of the accused including Kangra, Ponta Sahib and Sirmaur in Himachal Pradesh.