The Central Bureau of Investigation (CBI) has registered a criminal offence against a Pune-based company for allegedly cheating Bank of India to the tune of Rs7.57 crore. In its complaint the bank has alleged that the borrowers fraudulently and dishonestly diverted the loan amount to related parties and defaulted in repayment of loan amount.
Written complaint received last year
According to the CBI’s Anti-Corruption Branch (ACB), a written complaint was received on July 19, 2022, from KS Varadarajan, Assistant General Manager, Bank of India, Pune Recovery Branch. The complaint alleged that the directors and guarantors of a borrower company, engaged in milk processing and manufacturing by-products, hatched a criminal conspiracy amongst themselves and with unknown public servants and unknown others by misrepresenting and suppressing material facts, and availed credit facilities of Rs7.57 crore for their business purpose in October 2017.
Borrowers fradulently diverted loan amount
“After availing of the credit facility, the borrowers fraudulently and dishonestly diverted the loan amount to related parties and defaulted in repayment of loan amount and caused the loan account to NPA on June 30, 2019, thereby causing wrongful loss to the bank and corresponding wrongful gain to themselves. Thus the borrower company cheated the bank to the tune of Rs7.57 crore as on April 6, 2022 and interest thereon,” the agency claimed in its FIR.
CBI FIR said company, directors/ guarantors all collectively responsible
“The company along with its directors / guarantors during the relevant period of time and all are collectively and severally responsible for the conduct of its day-to-day business and affairs. The company along with its directors / guarantors committed default in due repayments of credit facilities,” the FIR stated.
