Fraud case against city firm: CBI raids 12 locations, seizes $90,413 and ₹1.99 crore in Andheri

The Central Bureau of Investigation (CBI) on Thursday conducted searches at 12 locations across the country as part of its probe in a fraud case registered against a city-based firm and seized $90,413 and ₹1

The Central Bureau of Investigation (CBI) on Thursday conducted searches at 12 locations across the country as part of its probe in a fraud case registered against a city-based firm and seized $90,413 and ₹1.99 crore in cash from the office of one of the accused in Andheri.

Fraud case against city firm: CBI raids 12 locations, seizes $90,413 and ₹1.99 crore in Andheri

The agency had on December 30 registered four FIRs against PSL Limited and its directors for allegedly duping Canara Bank, Punjab National Bank, IDBI Bank and EXIM Bank to the tune of ₹217.37 crore.

As per the complaints, the firm that deals with manufacturing and coating pipes had taken the loans, but diverted the money to its subsidiaries. The alleged fraud had occurred between 2010 and 2015.

Of the places that were raided, eight were in Mumbai while one each was at Delhi, Noida, Kutch and Daman. At the Andheri office of DN Sehgal, one of the directors, the agency found $90,413 and ₹1.99 crore kept in two bags. Several incriminating documents and articles were also seized, a CBI officer said.

In separate cases, the probe agency on January 10 booked two city-based firms for allegedly duping banks to the tune of ₹6,645 crore.

The first FIR was registered against Prathibha Industries Limited and its four directors based on a complaint filed by Bank of Baroda. The complainant alleged that the company, which was into development of infrastructure projects, had taken ₹4,957.31 crore in loans from a consortium of 17 banks, headed by Bank of Baroda.

During investigation, it was learnt that the accused firm had diverted the borrowed money to related parties and subsidiaries between 2014 and 2017, CBI officers said, adding it had also made false sales and purchase transactions to increase its turnover. The company’s account was classified as nonperforming asset (NPA) on December 31, 2017.

The second case was registered against Vadraj Cement Limited and four of its directors for defrauding a consortium of 10 banks to the tune of ₹1,688.41 crore. The complainant is the lead bank, Punjab National Bank (PNB).

The accused company approached PNB and other consortium members for setting up a cement factory at Mora in Surat and Thumdi in Kutch, both in Gujarat. Later, it allegedly diverted the credit money to related parties and subsidiaries, the complaint said. The alleged fraud had occurred between 2009 and 2018. The company’s account was declared NPA on March 20, 2018.