CBI ARRESTS THREE ACCUSED PROMOTERS & DIRECTORS OF A VADODARA BASED PRIVATE COMPANY IN RS.2654 CRORE(APPROX) BANK FRAUD CASE


Press Release
New Delhi, 18.04.2018

The Central Bureau of Investigation has today arrested a Promotor/Founder; a Managing Director and a Joint Managing Director, all of Vadodara (Gujarat) based private company in an on-going investigation of a case.

The arrested accused will be produced today before the Special Judge, CBI Cases, Ahmedabad (Gujarat).

A case was registered under section 120-B r/w 420, 467,468,471 of IPC and sections 13(2) r/w 13(1)(d) of PC Act, 1988 on the allegations that Vadodara (Gujarat) based private company through its founder, Managing Director & Joint Managing Director, along with other unknown persons associated with them in conspiracy with unknown bank officials cheated the banks to the tune of Rs. 2654.40 Crore (approx) by falsification of accounts, creation of false documents, forgery of records etc. It was further alleged that the said private company engaged in the manufacture of cables and other electrical equipment, through its management, has fraudulently availed Credit Facilities from a Consortium of 11 Banks (Public Sector and Private Sector) since 2008, with an outstanding amount of Rs. 2654.40 Crore as on 29.06.2016. The banks include Bank of India; Bank of Baroda; ICICI Bank; Allahabad Bank; Axis Bank; Dena Bank; SBI; IOB; IFCI; EXIM bank of India & Corporation Bank and other financial institutions. The company and its Directors allegedly managed to get the term loans and Credit facilities in spite of the fact that they were already appearing in the RBI’s Defaulters List and ECGC Caution List at the time of initial sanction of Credit Limits by the Consortium.

Searches were conducted on 05.04.2018 at various locations in Vadodara including official & residential premises of accused; said private company & others.

After the searches, notices were issued to these accused to join investigation. But instead of joining the investigation, the accused absconded and were not available at their known places of residence. In the meantime, the accused also applied for anticipatory bail in the Court of Special Judge, CBI Cases, Ahmedabad on 06.04.2018, which was rejected on 10.04.2018. Even then, the accused persons did not join investigation and tried to avoid the process of law. On the request of CBI, the Special Judge, CBI Cases issued Non-Bailable Warrants on 13.04.2018. CBI located the accused yesterday late in the evening from Udaipur (Rajasthan) with the assistance of Gujarat Police and arrested today morning.

Investigation is continuing.


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