Bank Fraud: CBI files Chargesheet against Pvt firm, Ex-promoter in Bank Fraud of Rs. 2435 Crore

The Central Bureau of Investigation(CBI) has filed a Chargesheet before Special Judge, CBI cases, Rouse Avenue District Courts, New Delhi against a private company based in Mumbai and others including its then Promoter, etc in an ongoing investigation of a case related to bank fraud of Rs. 2435 crore (approx).

A lawsuit was filed on June 22, 2021, against the private company and others, including its promoter, CEO and MD, ED and CFO, two Independent Directors, CFO, Unknown Public Servants, and Unknown Others. It was claimed that the defendants defrauded a group of 13 banks, led by State Bank of India, resulting in a fraud of Rs. 2435 crore (approx). Huge sums of bank loans were allegedly diverted by the accused to its affiliated parties, and subsequently, adjustment entries were made.

Bank Fraud

The suspect was also accused of misrepresenting and fabricating books of accounts, entries, and vouchers in order to borrow money from the bank while using the same securities as collateral for loans without disclosing financing from other banks, according to the additional allegations. The business of the company was producing electrical equipment.

The investigation is still ongoing.