Mumbai CBI Books Private Firm for Alleged Cheating of Rs.56.63 Crore

Strategic Insights -

The Central Bureau of Investigation (CBI) has booked a private firm and its two directors for allegedly cheating Canara Bank of Rs.56.63 crore by diverting loan funds and submitting fabricated documents. The case revolves around R Private Limited, a manufacturer of aluminum products, which allegedly misappropriated funds sanctioned by the bank for non-sanctioned purposes between 2019 and 2020. The CBI registered the case based on a complaint filed by Canara Bank's deputy general manager on July 28, following a forensic audit that revealed the company had overstated its stock value and diverted excess finance.

Key Takeaways:

  • The Mumbai unit of the CBI booked R Private Limited and its two directors for allegedly cheating Canara Bank of Rs.56.63 crore by diverting loan funds and submitting fabricated documents.
  • The firm allegedly misappropriated funds sanctioned by the bank for non-sanctioned purposes between 2019 and 2020.
  • A forensic audit conducted in September 2022 found that the company had overstated its stock value and diverted excess finance.
  • Investigators allege that the borrowed funds were used to create assets, acquire equities, and invest in debt instruments in violation of loan conditions.
  • The firm reportedly transferred funds to its group companies and subsidiaries, further breaching sanction terms.
  • The CBI registered the case under relevant sections of the Indian Penal Code and the Prevention of Corruption Act.
  • The case has been registered based on a complaint filed by Canara Bank's deputy general manager on July 28.

Statistics:

  • Rs.56.63 crore: The amount allegedly cheated by R Private Limited from Canara Bank.
  • 2019-2020: The period during which the firm allegedly misappropriated funds sanctioned by the bank for non-sanctioned purposes.
  • May 2019: Not explicitly stated in the text, however, external reference suggests the bank's initial loan to the company might have occurred during this time.
  • Rs.5.63 crore: The amount by which the company's stock value was allegedly inflated.
  • September 2022: The month in which a forensic audit was conducted, revealing the company's financial irregularities.

Sources:

  • [Hindustan Times]