Mumbai News: CBI begins probe into ₹260 crore bank fraud case against private firm

The Central Bureau of Investigation (CBI) has registered a case of criminal conspiracy, cheating, and criminal breach of trust against a company engaged in the business of manufacturing and supply of anti-corrosive coated steel pipes used primarily in the supply of oil, gas, and water. The company is alleged to have cheated Union Bank of India (UBI) to the tune of ₹260.43 crore. The bank's complaint states that the borrower company never utilized the loan amount for the project it had undertaken, thereby violating the bank's terms and conditions and misappropriating public funds.

UBI official filed complaint

Debraj Bag, Deputy General Manager of UBI's Stressed Asset Management Branch in Mumbai, filed a complaint with the CBI on September 17, 2021, against a private company based in Andheri (East), its directors, and others. The complaint alleges that between 2010 and 2015, the accused, in a criminal conspiracy, cheated the bank of ₹260.43 crore. According to the CBI officials, "The company approached the bank and requested credit facilities under multiple banking arrangements for its business purpose. However, the borrower company never utilized the loan amount disbursed by the bank for the project it had undertaken."

Accused involved in intentional suppression and misrepresentations

"The accused persons, in connivance with other unknown individuals, intentionally induced the bank to disburse credit facilities, which the bank would not have done if not for intentional suppression and misrepresentations. As a result, the accused persons wrongfully enriched themselves, causing a wrongful loss of ₹260.43 crore and interest chargeable from the date of non-performing asset (NPA) until the present. The borrower has defaulted on repayment, and the account has become an NPA," stated the CBI in its FIR.