CBI books Ahmedabad-based firm for ₹121-cr bank fraud

The accused have been booked under sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act (PC Act) pertaining to criminal conspiracy, cheating and criminal misconduct

MUMBAI: The Mumbai unit of the Central Bureau of Investigation (CBI) has booked an Ahmedabad-based enzyme manufacturing firm, and others, for defrauding Bank of India (BOI) of ₹121.60 crore. The firm, its two directors and a whole-time director, unknown public servants and unknown others were booked by the CBI on September 8, based on a complaint by BOI’s deputy general manager (recovery).

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The accused have been booked under sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act (PC Act) pertaining to criminal conspiracy, cheating and criminal misconduct.

In the complaint dated June 19, BOI’s deputy general manager (recovery) said the firm began banking with BOI in 2002 under a sole-banking arrangement. Credit facilities were extended to the firm on May 7, 2002, while its loan account was classified as a non-performing asset (NPA) on September 30, 2014, with an outstanding amount of ₹121.60 crore.

Subsequently, as per due process, BOI conducted a forensic audit of the firm’s loan account, which, prima facie, found “contents of fraud”, officials said.

BOI provided the firm an opportunity to raise objections against the findings of the forensic audit and submissions made by the accused persons were heard by the bank, according to the first information report (FIR) registered by the CBI.

“The complaint, prima facie, disclosed commission of offences of criminal conspiracy, cheating and criminal misconduct. Hence a regular case was registered for investigation,” a CBI official said.