CBI Arrests Director of Private Company in Rs 512 Crore Loan Fraud

The Central Bureau of Investigation(CBI) has arrested a Managing Director & Promoter of a private company based at New Delhi in an on-going investigation of a case related to bank fraud of Rs.512.67 crore.

The CBI had interviewed a number of people throughout the course of the inquiry, including witnesses, employees of private companies, bank authorities, etc. However, it was discovered that the company’s MD/Promoter was evasive in his responses.

A case was filed on November 19, 2020, alleging that a private firm with its headquarters in Mangala Puri, Palam, New Delhi, as well as its director, promoter, other directors, unknown public servants, and others, had caused banks to lose a total of Rs. 512.67 crore (approx). In its complaint, the complainant bank, State Bank of India, claimed that the accused defrauded a group of six institutions, including State Bank of India, resulting in a fraud of Rs. 512.67 Crore. The accused was also accused of intentionally defrauding banks by exaggerating the company’s debts and diverting bank loans to its affiliated parties.

The said private company was into the business of manufacturing & trading of monoblock pump, submersible pump, batteries, invertors & electrical goods and its Units were at Sonipat (Haryana) & Kala Amb (Himachal Pradesh). The accounts of said Company was declared NPA on 27.02.2017.

CBI had earlier conducted searches on 02.12.2020 at the premises of the accused which led to recovery of several incriminating documents including books of accounts of the said borrower company, purchase / sales details etc.

The arrested accused will be produced tomorrow before the Competent Court in Delhi.