Two private firms, its directors booked for duping bank of ₹16.85 crore

According to the Central Bureau of Investigation (CBI), the loan account of the private venture – a Nagpur-based poultry firm – was classified as a Non-Performing Asset on January 31, 2019. The bank had thereafter reported the loan account as “fraud” on February 25, 2019, to the Reserve Bank of India as per the bank’s complaint to the CBI, agency sources said

Mumbai: Two private firms, along with four other persons, have been booked recently for allegedly cheating Union Bank of India of ₹16.85 crore after diverting the sanctioned credit facilities to the borrower.

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According to the Central Bureau of Investigation (CBI), the loan account of the private venture – a Nagpur-based poultry firm – was classified as a Non-Performing Asset on January 31, 2019. The bank had thereafter reported the loan account as “fraud” on February 25, 2019, to the Reserve Bank of India as per the bank’s complaint to the CBI, agency sources said.

“Apart from the two firms, the agency is investigating the roles of their directors/representatives, a chartered accountant and unidentified public servant/s as well. The second firm booked in the case is involved in collateral management services,” the CBI sources said.

“It was alleged that the accused entities and persons had between 2011 and 2018 entered into a criminal conspiracy, committed criminal breach of trust and criminal misconduct, thereby cheated the bank to the tune of ₹16.85 crore, by dishonestly releasing pledged primary security placed in an accused firm in an illegal manner,” the CBI source added.

The source said that there was fraudulent diversion of credit facilities sanctioned to the poultry firm and the acts amounted to cognizable offences and are being probed.