Press Release
New Delhi, 28.02.2020

The Central Bureau of Investigation has registered a case against New Delhi based private export company; its Directors and unknown others including unknown public servants u/s 120-B r/w 420, 468 & 471 of IPC and u/s 13(2) r/w 13(1)(d) of PC Act, 1988 (as amended in 2018) on a complaint from State Bank of India on behalf of consortium banks. It was alleged that the said company availed credit facilities to the tune of Rs. 625 crore(approx) and cheated members of consortium banks by way of forgery & using forged documents as genuine. This caused alleged loss Rs. 604.81 crore(approx) to the banks. The consortium banks consisted of 07 banks, namely State Bank of India, Punjab National Bank, Vijaya Bank (now Bank of Baroda), Andhra Bank, Oriental Bank of Commerce, Syndicate Bank and Canara Bank.

Searches have been conducted at the premises of the Directors of borrower company in Delhi which led to recovery of various incriminating documents.

The other case has been registered against a private Gems & Jewels Company based at Delhi; its Promoter-Directors and unknown public servants & private persons under sections 120-B, 420, 467, 468, 471 of IPC and 13(2) r/w 13(1)(d) of P.C. Act, 1988 on a complaint from the Indian Overseas Bank, Delhi.

It was alleged that Promoter-Directors of said private company availed various loans/credit limits from the Indian Overseas Bank during the period 2003 to 2015 against hypothecation of jewellery stocks and collateral securities. It was also alleged that the loan amounts were siphoned off through related parties in violation of lending conditions stipulated by the Bank. It was further alleged that the books of the Company were manipulated/forged to camouflage illegal siphoning-off funds and misappropriation of hypothecated stocks. The Bank has suffered an alleged loss and declared an amount of Rs.77.51 crore(approx) as Non Performing Assets (NPA) on 29.09.2015.

Searches have been conducted at three places in Delhi at the premises of accused.

Investigation in both the cases is continuing.