CBI books private firm in ₹30-cr bank fraud case

The CBI has filed a case against Signet PP Ltd for a ₹29.97 crore bank fraud, involving unpaid loans that harmed Indian Bank in 2017-2018.

MUMBAI: The Central Bureau of Investigation (CBI) booked a private firm and its directors for an alleged bank fraud of ₹29.97 crore involving unpaid loans, which caused a loss to the public-sector Indian Bank during 2017-2018.

CBI books private firm in ₹30-cr bank fraud case

The CBI’s Mumbai unit registered an FIR on April 2 against the firm, Signet PP Ltd, its directors, and unknown public servants under the Prevention of Corruption Act and the Indian Penal Code’s sections relating to criminal conspiracy, cheating and misconduct by public servants, on the basis of a complaint filed by the bank’s deputy general manager, Stressed Assets Management Branch, Mumbai.

The Indian Bank classified the firm’s loan account as a Non-Performing Asset on May 21, 2018 and sent a report to the Reserve Bank of India on March 24, 2020, calling it a “fraud” account.

In its complaint, the bank alleged that the borrower firm and three of its directors in conspiracy with unknown public servants and private persons, fraudulently availed credit facilities, cheating the bank of ₹29.97 crore as of May 21, 2018. The firm allegedly submitted incorrect stock and book debt statements.

The complaint alleged that the firm diverted and utilised the disbursed loan funds for purposes other than those for which they were sanctioned.

“The bank complained that the borrower company misappropriated funds to the tune of ₹29.97 crore,” a CBI official said.