Director of Private Company booked for causing loss of Rs. 33 crore to Bank of India:

Director of Private Company booked for causing loss of Rs. 33 crore to Bank of India The Central Bureau of Investigation(CBI) has registered a case against the private company and others including its Directors, unknown public servants & private persons on the allegations of causing a loss of Rs. 33.12 crores (approx) to Bank of India, D.N.Road Branch, Mumbai. It was alleged that the accused conspired with one another and obtained a Cash Credit (hypothecation of stocks) limit of Rs. 30 crores, a Letter of Credit limit of Rs. 6 crores, and a Bank Guarantee limit of Rs. 50 lakh (totaling around Rs. 36.50 crores) by submitting fake/fudged stock statements in collusion with unknown public servants and unknown others. It was also claimed that the accused had diverted the loan amount/funds with dishonest intent through other parties who had no commercial relations with the aforementioned private corporation. Throughout the months of September and October of 2017, the shares of the stated private corporation was dramatically lowered. It was also stated that the directors of a private firm removed the stocks supplied as primary security without the knowledge of the bank and thus misappropriated/mis-utilized the sale profits without passing through the bank and thus deceived the bank. The Bank of India allegedly suffered a loss of Rs. 33,12,18,058/- (approximately). The account was deemed non-performing on March 31, 2018 due to non-service of interest and non-repayment of dues, and the outstanding loan amount was Rs. 33.12 crore as of that day. On July 20, 2021, the account was declared fraudulent. Searches were performed at four sites in Mumbai at the accused's homes, resulting in the recovery of Rs. 63 lahks (approx). During the locker operation, a large amount of jewelry, including gold and diamonds, gold biscuits, and Rs. 4 lahks in cash were discovered. The investigation is still ongoing.