CBI ARRESTS THEN CHAIRMAN/PROMOTER OF A PRIVATE COMPANY IN AN ON-GOING INVESTIGATION OF A CASE RELATING TO ALLEGED LOSS OF RS. 2223.13 CRORE (APPROX) TO 20 BANKS

Press Release
New Delhi, 08.05.2017

       The Central Bureau of Investigation has today arrested then Chairman/Promoter of a private company based at Kolkata in an on-going investigation of a case relating to alleged loss of Rs.2223.13 crore(approx) to 20 Banks. The accused earlier fled India for Dubai. He was intercepted at Mumbai Airport while coming from Dubai.

       A case was registered against a private company based at Kolkata; its Chairman/Promoters/Directors; other executives & other unknown persons and unknown Bank officials under section 120-B r/w 420,468 & 471 of IPC and Section 13(1)(d) r/w 13 (2) of PC Act, 1988 on a complaint from SBI relating to the allegations of cheating 25 consortium member banks including 20 Nationalized Banks (led by SBI) to the tune of Rs. 2672 crore (approx.). An alleged loss of Rs. 2223.13 crore (approx.) was caused to 20 Nationalized Banks. It was alleged that the accused had defrauded the banks through diversion of funds, fraudulent exports to Shell Companies floated at Hong Kong, Singapore, UAE etc. with the help of employees/associates, non-realization of export proceeds from the Shell Companies so floated. It was also alleged that the accused was availing import finance from one member Bank of the consortium for import of gold; but after manufacturing of gold jewellery, they were availing export finance from another member Bank so that the proceeds of export could not be realized by the Banks to pay off the liability of import finance. It was further alleged that the accused had siphoned-off the working capital loans for long term uses such as construction of factory and paid off other liabilities. The accused allegedly shipped stocks offered as primary security to its foreign subsidiaries without the knowledge of the lenders and also falsely projected huge loss to the Banks purportedly suffered through a bogus bullion trade and a merchanting trade, for which the Banks did not finance.

       The arrested accused is being produced today before the competent court at Mumbai.

       Further investigation is continuing.


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