Mumbai firm, directors booked for duping Axis Bank of ₹42.5 crore

One of the directors of the accused firm is already booked in a loan fraud case against Talwalkars group which is facing a total of four FIRs. Axis Bank is also a complainant in one of the FIRs

Mumbai: The Economic Offences Wing (EOW) of the Mumbai police has registered a loan fraud case against Tribhovandas Bhimji Zaveri & Sons Retail Private Limited for allegedly defrauding Axis Bank to the tune of ₹42.5 crore.

The firm paid monthly instalments for the first three-four years, but started defaulting in May 2019, the EOW sources said. In August 2019 the bank declared the accused of the firm’s loan account a non performing asset. (Stock Pic)

The accused firm is not related to the jewellery retail brand Tribhovandas Bhimji Zaveri (TBZ). The accused firm allegedly availed cash credit facility from the private bank, but failed to repay it. Forensic auditing of the firm’s accounts revealed that it used the loan money other than for the purpose for which it was availed, the police said.

One of the directors of the accused firm is already booked in a loan fraud case against Talwalkars group which is facing a total of four FIRs. Axis Bank is also a complainant in one of the FIRs.

The Colaba police recently registered the FIR (of which HT has a copy) against Hemant Brajlal Zaveri, Girish Nayak and Tribhovandas Bhimji Zaveri & Sons Retail Private Limited on the basis of a complaint filed by Prakash Rao, assistant vice president of the Axis Bank. The case has been recently transferred to the Banking-3 unit of EOW.

The firm was set up in 2015 and has an office at Mulund. Zaveri and Nayak were the directors in the firm.

Rao in his complaint to the police has stated that in the year 2015 the accused company’s directors Zaveri and Nayak had requested for a cash credit facility loan for the purchase-sell business of precious stones and jewellery and accordingly the bank in September 2015 sanctioned the loan of ₹36 crore to it.

The firm paid monthly instalments for the first three-four years, but started defaulting in May 2019, the EOW sources said. In August 2019 the bank declared the accused of the firm’s loan account a non performing asset.

In the year 2020, the bank appointed a forensic auditor, who found several financial irregularities in the transactions of the firm, the complainant stated in the FIR. The firm had diverted loan money to third parties, showed bogus transactions, made falsified financial statements, etc. As the accused firm allegedly violated the rules and laws laid down by Reserve Bank of India. The complainant bank announced the accused firm’s account as fraud, the FIR stated.

It added that the accused firm between September 2015 to February 2019 availed unsecured loan from another firm and repaid ₹11.78 crore, but did not repay the Axis bank’s loan.