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CBI books private firm for ₹260-cr bank fraud
CBI has registered a case against a company and five others for allegedly duping Union Bank of India worth INR 260.42 crore.
Mumbai: The Central Bureau of Investigation (CBI) has registered a case against a company engaged in manufacturing anti-corrosive coated steel pipes and five others, including the firm’s top officials, for allegedly duping Union Bank of India (UBI) to the tune of ₹260.42 crore.
The firm, which manufactures pipes primarily used in transmission of oil, gas and water, is based in the Union Territory of Daman and Diu. The firm’s managing director and director, a chartered accountant, unknown public servants and unknown others, have been booked in the case, according to CBI sources.
The agency ‘s Mumbai unit registered the case on the receipt of a complaint from the public sector bank’s Stressed Asset Management Branch, Mumbai on September 17, 2021.
“It was alleged that the accused firm and individuals conspired with each other during the period of 2010 to 2015 to cheat the Union Bank of India to the tune of ₹260.43 crores,” a CBI official said.
The bank had sanctioned and disbursed an amount of ₹85 crore as short-term loan for a particular project of the firm, the official said, adding that the firm had, via a letter of 2013, claimed before the bank that it had spent the funds for the said project.
The accused chartered accountant thereafter confirmed that the firm spent an amount of ₹95 crore on raw materials and other expenses from the funds disbursed by the complainant bank,” the official said.
“No details were available to indicate usage of the loan funds for the sanctioned purpose. The transaction trail to the misappropriation was reflected in the statement provided by the forensic auditor,” the official said and added that the terms and condition of the bank’s sanction were allegedly violated and misappropriation of public money took place.
The case has been registered for criminal conspiracy, cheating and criminal misconduct under the relevant sections of the Indian Penal Code and the Prevention of Corruption Act against the accused.
