Press Release
New Delhi, 11.11.2020

The Central Bureau of Investigation has registered a case against private company (cooperative society) based at District Surat (Gujarat) and others including  its 17 then office bearers/Directors, unknown public servants etc on the allegations of cheating the Union Bank of India during the period 2013-2015 through diversion of loan amounts sanctioned to various farmers and thereby causing loss of Rs. 42.30 Crore (approx) to the said bank. It was further alleged that Union Bank of India, Palod Branch, Taluka Mangrol, Surat had sanctioned loans worth Rs. 40 Crore under Union Green Card Scheme in the names of 1728 farmer members of the said company/society and the said loan amount was disbursed into the current account of said company/society, which did not further distribute the said amounts/equivalent raw materials to the farmers. The said loan accounts became NPA.

Searches are being conducted today at 05 premises including office & residences of accused at District Surat.

The other case was registered against Hyderabad based private company and others including its MD, ED, Director, Valuer, Advocate & Unknown Public Servants of IFCI Ltd., on the allegations of fraud in IFCI Ltd. It was alleged that the said company (through its Directors) fraudulently got sanctioned factoring facility for Rs. 15 Crore (approx) from IFCI factors Ltd. & availed an amount of Rs. 8 crore (approx) by way of execution of a purchase bill Factoring Agreement and further submitted false & forged documents in respect of two immovable properties as mortgage in favour of M/s IFCI carrying wrong valuation report of the valuer and false title report. It was further alleged that the accused including unknown public servants of IFCI Ltd., entered into conspiracy during the period 2010 to 2012 and defrauded the IFCI Ltd. to the tune of Rs. 11.77 crore (approx).

Searches were conducted at the residential and office premises of accused including at Hyderabad, Eluru, Rajam, Benguluru which led to recovery of several incriminating documents.

Investigation in both the cases is continuing.