CBI FILES CHARGESHEET AGAINST THEN CHAIRMAN OF A PRIVATE COMPANY AND OTHERS FOR CAUSING LOSS OF Rs. 102.87 CRORE (APPROX.) TO SYNDICATE BANK

Press Release
New Delhi, 08.06.2018

The Central Bureau of Investigation has filed a chargesheet in the Court of Additional Chief Metropolitan Magistrate, Chennai against the then Chairman of Chennai based private company;  the then Managing Director of said company and 23 others U/s 120-B of IPC r/w 201, 409, 420, 468, 471 & 477-A of IPC.

CBI had registered a case on 08.06.2016 against the then Chairman of a private company based at Chennai and others on a complaint from Syndicate Bank. It was alleged thatthe said Chennai based Company (a public limited Non Banking Financial Company) was banking with Syndicate Bank, Corporate Finance Branch, Chennai since 2004. The accounting data base maintained was in ‘Oracle’ which allowed the said Company to alter/manipulate it through back end process. It was further alleged that the company had been showing inflated income as well as inflated assets over the years (since 1998) by showing fictitious income and non-existing assets. Most of the loans shown as granted by the said Company to their clients were allegedly fictitious.  Loans availed from the Banks were allegedly diverted to the shell companies controlled by the then Managing Director to acquire shares of said Company only. It was also alleged that the NPAs of said Company were shown to be taken over by these shell companies through bogus agreements to avoid NPA provisions resulting in inflated profits, thereby causing loss of Rs.102.87 crore (approx.) to Syndicate Bank.

Investigation revealed that the said accused persons along with 7 satellite/ shell companies in furtherance of a conspiracy with statutory and internal auditors had allegedly cheated the bank by submitting forged financial statements to obtain undue credit limits and siphoned the same away for extraneous uses whilst causing wrongful loss of Rs. 102.87crores (approx.) to the bank.  Investigation has also disclosed that the Promoter-Directors had allegedly misappropriated the assets of the company entrusted to them by using such loaned money to donate annually to a Trust run by the said accused.

After thorough investigation, CBI filed a chargesheet.

The public is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.



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