CBI ARRESTS A DIRECTOR OF DELHI BASED PRIVATE COMPANY AND ANOTHER PERSON IN AN ALLEGED BANK FRAUD CASE OF RS. 24.64 CRORE (APPROX)

Press Release
New Delhi, 11.05.2017

       The Central Bureau of Investigation has arrested a Director of a Private company based at New Delhi and another person in a case relating to alleged fraud of Rs. 24.64 crore (approx) in Canara Bank.

      A case was registered on 18.05.2016 U/s 120 B r/w 420, 467, 468, 471 of IPC and Section 13 (2) r/w 13 (1) (d) of PC Act, 1988 against the private Steel Company based at Delhi & its two Directors; unknown Public Servants and other unknown Private Persons.

       It was alleged that said Company through its Director had obtained limits for OCC/ODBD of Rs 10.00 crore and ILC/FLC of Rs 10.00 crore from Canara Bank, Connaught Circus, Delhi. It was also alleged that these Limits were fraudulently secured by hypothecation of Stocks & book debts of the company and fraudulently collaterally secured by the Equitable Mortgage of the two properties which were not in possession of the accused at the time of sanction of the loan. It was further alleged that 23 Inland Letters of Credit were fraudulently opened by said Company during the period of 30.03.2013 to 30.12.2013 in Canara Bank in favour of 8 beneficiaries which were devolved on the Bank. The funds of the alleged LCs were diverted by the accused persons. Funds from the cash credit account and ILC/FLC were also allegedly siphoned off to the sister concerns of the said company and were further utilized by the accused persons for the purposes other than for which the loan was sanctioned. An alleged loss to the tune of Rs.24.64 crore (approx) was caused to Bank. The account was turned NPA on 31.03.2014.

       Both the arrested accused were produced before the CMM, Patiala House Courts, Delhi and granted 6 Days Police Custody.


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