CBI FILES A CHARGESHEET AGAINST THREE DIRECTORS OF VADODARA BASED FIRM AND OTHERS IN A BANK FRAUD CASE

Press Release
New Delhi, 13.07.2018

The Central Bureau of Investigation has today filed a charge sheet U/s 120-B r/w section 420, 467, 468, 471 of IPC and sections 13(2) r/w 13(1)(d) of PC Act, 1988 & substantive offences thereof against a Vadodara (Gujarat) based private company; three Directors & an Assistant Officer (Finance Department) of said private company; then DGM, Bank of India, Zonal Office, Vadodara; then AGM, Bank of India, Zonal Office, Vadodara and a Director of another private company.

CBI had registered the case U/s 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, had 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 RBIs 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.

The investigation revealed that during the period 2007 onwards, the then AGM, Bank of India, Zonal Office, Vadodara; the then DGM, Bank of India, Zonal Office, Vadodara had allegedly entered into criminal conspiracy with the Directors of said Vadodara based private company & others in the matter of fraudulent appraisal and disbursal of credit facilities to the firm. In furtherance of the same, accused private persons allegedly submitted forged Bill of Exchange & false documents of another private cables company without actual purchases by said Vadodara based company for availing Letter of Credit facilities from the Bank of India. It was further alleged that the Directors of the said company had also obtained fraudulent documents of sale from other private companies for availing Letter of Credits facility from Bank of India. In this manner, turnover of the company was fraudulently inflated for getting enhancement in CC limits in the subsequent years and also fraudulently obtained CENVAT credit from Government. Majority of payments so made from the CC account were routed back to said private company.

Further investigation in the case is continuing.

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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