Sign in Subscribe
Banks (Finance)

SBI Files Complaint with CBI, Alleges Rs. 7.32 Crore Fund Diversion

Strategic Insights

— 2 min read

Mumbai-based State Bank of India (SBI) has filed a complaint with the Central Bureau of Investigation (CBI) alleging that a Nashik-based private company engaged in shrink wrapper manufacturing has fraudulently diverted funds to the tune of Rs. 7.32 crore. The bank claims that the accused borrower manipulated the books of account and stopped submitting stock statements after 2016-17. The probe has been initiated following a written complaint from Amit Swaroop, chief manager, operations, SBI.

Key Takeaways:

  • The CBI has initiated a probe against a Nashik-based private company for allegedly causing a wrongful loss to SBI to the tune of Rs. 7.32 crore.
  • The bank alleges that the accused borrower fraudulently diverted funds from loan accounts to various other accounts for potential routing transactions.
  • The probe was initiated after a written complaint was received from Amit Swaroop, chief manager, operations, SBI.
  • The bank claims that the accused borrower manipulated the books of account and stopped submitting stock statements after 2016-17.
  • The account was declared fraud on 20.09.2023, with the accused company and accused persons allegedly causing wrongful gain to themselves and wrongful loss to the bank.
  • The accused company and accused persons are alleged to have caused offenses of cheating, dishonest misappropriation of property, criminal breach of trust, criminal conspiracy, and criminal misconduct by abuse of official position by unknown public servants of the bank.
  • The bank in its complaint stated that the accused company had machinery worth Rs. 4.46 crores and inventory of Rs. 3.77 crores appearing in the books of accounts, but only Rs. 4 lakhs worth of machinery were handed over to the resolution professional (RP) during the process of locating the hypothecated goods.

Statistics:

  • Rs. 7.32 crore: the amount allegedly diverted by the accused borrower from loan accounts to various other accounts for potential routing transactions.
  • Rs. 11.05 crores: the total amount of cash credit facility and term loan sanctioned by SBI to the accused borrower between 2013 and 2017.
  • Rs. 4 lakhs: the value of machinery handed over to the RP.
  • Rs. 4.46 crores: the value of plant and machinery in the accused company as per the valuation report.
  • Rs. 3.77 crores: the value of inventory appearing in the books of accounts.
  • 20.09.2023: the date the account was declared fraud.
  • 2016-17: the year in which the accused borrower stopped submitting stock statements.

Sources:

  • Indian National Press (Bombay) Pvt. Ltd., distributed by Contify.com.

Read more