CBI books 2 Gujarat firms for duping banks of ₹72 crore

CBI’s preliminary probe has disclosed that the accused had committed cognisable offences of criminal conspiracy through manipulation of records, cheating and criminal misconduct/abuse of official position

The Central Bureau of Investigation’s (CBI) Mumbai unit has booked two Gujarat-based companies for allegedly duping two erstwhile banks – State Bank of Patiala and State Bank of Mysore – of Rs71.88 crore by defaulting loan repayments. The probe into the case has revealed that the directors of the firms misused the funds for other purpose and not for the stated purpose of expanding their businesses, said officers.

Investigators said they would soon be calling the employees of the two companies as well as of the erstwhile banks, who were involved in facilitating the loans to these two companies, for questioning on the financial irregularities. (HT File)

The accused have been identified as Paresh Dayaljibhai Patel, managing director of Sayona Colours Private Limited; and the directors of its associate firm Shamrock Chemie Private Limited.

CBI’s banking securities frauds branch (BSFB) had recently registered a first information report (FIR) against the accused on a complaint filed by Jitendra Shankar, deputy general manager (corporate stressed asset management branch), State Bank of India.

The complainant stated that the promoter and directors of Sayona Colours Private Limited, represented by Patel and managing director late Brijesh Jayantibhai Patel, as well as the directors of Shamrock Chemie Private Limited, and some unknown government officials entered into criminal conspiracy during 2009-2015 to cheat State Bank of Patiala and State Bank of Mysore by manipulation of books of accounts and diversion of funds.

The complaint had stated that Sayona Colours Private Limited was enjoying various credit facilities from the two banks. The account of the company became a non-performing asset (NPA) on October 27, 2014, following which the State Bank of India conducted its forensic audit. The audit revealed that the firm had discontinued the production of its fast-moving consumer goods (FMCG) products on December 31, 2013, and the production was transferred to its associate firm Shamrock Chemie Private Limited.

The FIR had further alleged that the company had also transferred the entire plant and machinery, approximately worth Rs9.09 crore to Shamrock Chemie Private Limited in 2013-14 without seeking permission from the bank or informing it.

It was alleged that Patel and Brijesh Jayantibhai Patel had diverted funds worth Rs23.16 crore, borrowed from the banks, to Shamrock Chemie Private Limited, to themselves and their family members during 2009-2015.

CBI’s preliminary probe has disclosed that the accused had committed cognisable offences of criminal conspiracy through manipulation of records, cheating and criminal misconduct/abuse of official position. They have been booked under the relevant sections of the Indian Penal Code (IPC) and Prevention of Corruption Act.

Investigators said they would soon be calling the employees of the two companies as well as of the erstwhile banks, who were involved in facilitating the loans to these two companies, for questioning on the financial irregularities.

Despite several attempts, the accused did not respond to HT’s calls and messages.