CBI Registers a Case against Private Company & Others including its Partners in Bank Fraud of Rs.61.71 Crore

CBI Registers a Case against Private Company & Others including its Partners in Bank Fraud of Rs.61.71 Crore The Central Bureau of Investigation (CBI) has registered a case on a complaint from Central Bank of India, Hyderabad against a private company based at Nellore(Andhra Pradesh) & its Partners including Guarantor and Unknown Public Servant(s)/Private person(s) on the allegations of causing loss of Rs.61.71 crore(approx) to Bank. The stated private company was accused of taking out CC, Term Loan, and Bank Guarantee loans totaling Rs.65.50 crore (approximately) between 2017 and 2018. The account became non-performing on August 30, 2018, with a total outstanding of Rs.62.46 crore (approx). The borrower reimbursed Rs.80 lakh after the account declared non-performing. The firm was also accused of syphoning off the majority of revenues through cash withdrawals and transfers to people unrelated to the business. Some firms allegedly displayed in-flow and out-flow transactions of monies solely to generate fictitious account turnover. To secure increased credit limits from the bank, the collateral securities were gold-plated and overpriced. It was further stated that the accused defrauded the bank by syphoning funds from the banking channel, employing various methods, distorting facts, and overvaluing stocks to obtain more drawing power than was eligible, resulting in an alleged loss of Rs.61.71 crore(approx) to the bank. Incriminating documents were discovered during searches in two locations in Nellore, Andhra Pradesh.