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Banks (Finance)

CBI Registers Criminal Offence Against Two Private Companies and their Directors for Alleged Wrongful Loss of ₹15.40 Crore to State Bank of India

Strategic Insights

— 1 min read

The Central Bureau of Investigation (CBI) has registered a criminal offence against two private companies and their directors for allegedly causing a wrongful loss of ₹15.40 crore to the State Bank of India (SBI). The complaint was received in December 2020 from Dipesh Raj, Deputy GM, SBI, against the two private companies, both having their offices at Malad, and their directors and other unknown persons. The alleged fraudulent activities, including cheating, forgery, and misappropriation, were carried out under the control and supervision of the directors, in collusion with other related parties.

Key Takeaways:

  • A criminal offence has been registered against two private companies and their directors for allegedly causing a wrongful loss of ₹15.40 crore to SBI.
  • The companies, having their offices at Malad, were sanctioned cash credit limit of ₹4 crore and ₹1 crore as non-fund based limit (LC) by SBI Commercial Branch, Saki Naka, in November 2007.
  • The companies diverted funds, misappropriated money, and made false representations to SBI, allegedly resulting in a wrongful gain to the companies and a corresponding wrongful loss to SBI.
  • Six Letters of Credit (LCs) of ₹25 lakh were issued by SBI to shell companies between January 2012 and March 2012, amounting to misappropriation of funds with dishonest intention.
  • The CBI alleged that the directors, in collusion with other related parties, carried out the fraudulent activities, including cheating, forgery, and misappropriation.
  • The total wrongful loss to SBI, including interest, is alleged to be ₹15.40 crore.

Statistics:

  • ₹15.40 crore: The total wrongful loss incurred by SBI, including interest.
  • ₹4 crore: The sanctioned cash credit limit for one of the companies by SBI Commercial Branch, Saki Naka, in November 2007.
  • ₹1 crore: The sanctioned non-fund based limit (LC) for one of the companies by SBI Commercial Branch, Saki Naka, in November 2007.
  • ₹2 crore: The temporary overdrawing requested by one of the companies in March 2012.
  • ₹25 lakh: The value of six Letters of Credit (LCs) issued by SBI to shell companies between January 2012 and March 2012.

Sources:

  • The Central Bureau of Investigation (CBI) First Information Report (FIR)
  • State Bank of India (SBI)
  • Indian National Press (Bombay) Pvt. Ltd.

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