CBI REGISTERS A CASE AGAINST PROMOTER DIRECTOR OF CHENNAI BASED PRIVATE COMPANY AND OTHERS ON THE ALLEGATIONS OF CHEATING THE CONSORTIUM OF 14 BANKS TO AN EXTENT OF RS.824.15 CRORE(APPROX)

Press Release
New Delhi, 21.03.2018

The Central Bureau of Investigation has registered a case against Chennai based private company & its Promoter Director, other Director; three Partners of other private companies based at Chennai and unknown public servants & unknown others on a complaint from State Bank of India on behalf of a consortium of 14 banks, on the allegations of cheating the consortium to an extent of Rs.824.15 crore(approx).

It was alleged that the Chennai based private company was in the business of manufacturing gold jewelery which was marketed under a brand name and used to sell its jewelry to various retail jewelers. The company was getting credit facilities from 14 banks led by SBI. The nature of the limit was Working Capital facility sanctioned to the tune of Rs.747 crore(approx). This apart, the company had also availed certain Term Loan limits from SBI. It was also alleged that there was falsification of records and the removal of the stocks which was secured to the lenders. It was further alleged that there were anomalies in the financial statements such as in the quantity of stock carried forward to the next year, anomaly in the sales register, diversion of funds and unusual transactions with the related parties.

Searches are being conducted today at various places in Chennai including the residences / offices of the accused persons and the said company.

Investigation is continuing.

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