CBI REGISTERS A CASE AGAINST CERTAIN THEN IDBI OFFICIALS; PRIVATE COMPANIES & OTHERS, AND CONDUCTS SEARCHES AT 50 PLACES

Press Release
New Delhi, 26.04.2018

The Central Bureau of Investigation has registered a case U/s 120-B, 409, 420 of IPC & 13(2) r/w 13(1)(d) of PC Act, 1988 against British Virgin Islands (BVI) based company & 38 others, including senior management officials of IDBI Bank, Private Companies & their Chairman/then Directors and unknown public servants & others on the allegations of perpetrating fraud through the loan accounts of said BVI based company and other company based at Finland to an extent of around Rs.600 crore. It is a case of alleged fraud on the bank by then Executives of the Bank, then promoters of the group and the companies involved.

It was alleged that Finland based Company was sanctioned loan by ICG, Chennai, IDBI in October, 2010 to the extent of USD equivalent of EUR 52 million {INR equivalent Rs.322.40 crore (approx)}. The performance of said company showed stress and it was eventually granted voluntary bankruptcy by a Court in Finland in October 2013. It was further alleged that in February / March 2014 a loan amounting to US $ 83 million {Rs. 523 crore (approx)} was sanctioned by IDBI to the company based in the British Virgin Islands, an associate company of the said Group of Companies. This was allegedly used for repaying other loans of other associate companies of this Group in flagrant violation of the regulatory guidelines of RBI on Foreign Investments in India.

It was also alleged that the loans were granted to said companies by the IDBI Bank at its highest decision making level comprising of the senior most Management and even Independent Directors, disregarding the existing guidelines, instructions & procedures and Subsequently, various conditions were relaxed or all together ignored. This led to an alleged loss of Rs.600 crore (approx) to bank/public exchequer.

Searches were conducted at 50 places located across 10 cities including Delhi, Mumbai, Faridabad, Gandhi Nagar, Chennai, Bangalore, Belgaum, Hyderabad, Jaipur and Pune at the premises of accused and others.

Investigation is continuing.


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