CBI files a charge-sheet against 24 accused persons including CA for causing loss of above Rs. 297.80 Crores to several Banks

CBI files a charge-sheet against 24 accused persons including CA for causing loss of above Rs. 297.80 Crores to several Banks

The Central Bureau of Investigation (CBI) has filed a charge sheet against 24 accused persons that also includes Director and Chartered Accountant (CA) of a private company (company) based in Mumbai, before Special Judge for CBI Cases for causing an alleged loss of approximately Rs. 297.80 Crores to various Banks

The said private company based in Mumbai is engaged in manufacturing of Aluminum Foil Containers, Aluminum Foil Rolls, Lids, and other related products, etc.

The allegations against the accused persons were that they had aided in the diversion of funds and facilitation in siphoning-off funds by submitting fake and forged purchase invoices. It was further alleged that the Directors, CA, Proprietors, of the said company had availed credit limits from various banks and financial institutions.

The nationalized bank – the Indian Overseas Bank Mumbai Branch (Bank) had disbursed credit facilities of approximately Rs. 292.20 Crores under consortium arrangement to the said company.

The allegations against the company were that they had adopted a modus operandi and availed huge loans from the various banks and financial institutions. For availing loans from the banks, the company had presented false and fabricated balance sheets with inflated sales.

The company had allegedly inflated the sales and the accused floated other firms and shell companies. They had made the company employees and their friends as directors. After that, they proceeded with the loan procedure and circulated the amount among different forged companies under the pretext of various invoice transactions even though there was no actual business that was going on.

It was further alleged that the said company had submitted fake bills and received the LC proceeds and diverted the proceeds to the real estate business, that they had also diverted a huge amount to several realtors of Mumbai.

An investigation took place against the accused persons and it was found out that they and devised the method known as Netting. Through this method they had suppressed the actual amount of borrowing liabilities. They had also availed loans from the banks and other financial institutions that were not shown in the balance sheets of the company. They adjusted the additional amount of loan was against investments made in Real Estate and other such businesses.

The said company had allegedly misrepresented the facts and they had also inflated the sales, and trade debtors in the balance sheet of the company. The bank officials had also supported and gave the company undue advantage in the processing, sanctioning, and encashment of the loan amount.

Several cases were registered by CBI against the accused persons of the said company that includes its Directors & others. After investigation, CBI filed charge sheets in seven cases whereby it was alleged that the company had caused loss to various banks, such as Indian Overseas Bank of approx. Rs.297.80 Crores; SBT a loss of approx. Rs.133.61 Crores; Dena Bank a loss of approx. Rs.183.83 Crores; Corporation Bank a loss of approx. Rs.60 Crores; IDBI Bank a loss of approx. Rs.40 Crores; SBI a loss of approx. Rs.122.07 Crores and EXIM Bank a loss of approx. Rs. 80.30 Crores.