Mumbai: The CBI on Tuesday filed a charge sheet before a special judge in Mumbai against 24 accused, including former officials of the Indian Overseas Bank, for allegedly causing loss of Rs 297.80 crore to the bank.
According to the investigative agency, the accused allegedly aided in diversion of funds and facilitated in siphoning-off funds by way of submitting fake and forged purchase invoices/LCs.
The accused include a Mumbai-based private company, its director and chartered accountant, former officials of the Indian Overseas Bank, and directors of associated companies. The CBI also alleged the company had availed credit limits from various banks and financial institutions.
Out of these nationalised banks, Indian Overseas Bank’s Mumbai Branch has disbursed credit facilities to the tune of Rs 292.20 crore under a consortium arrangement.
The company had allegedly adopted a modus operandi for availing huge loan from banks and financial institutions on false and fabricated balance sheets with inflated sales which were submitted to the bank and other financial institutions.
The CBI alleged for inflating the sales, the accused floated other firms and shell companies and made the employees or friends as directors of the company.
Thereafter, the loan proceeds were circulated among those companies under the guise of LC transactions without doing any actual business.
“The company also submitted the alleged false bills and received the LC proceeds and diverted the proceeds to real estate business. The huge amount were allegedly diverted to various realtors of Mumbai,” the CBI said in a statement.
During investigation, it was alleged that accused devised the methodology known as netting. “They had concealed/suppressed the actual amount of borrowing liabilities. Loans availed outside the consortium banks were not shown in the balance sheet. The additional amount of loan were allegedly adjusted against investments made in real estate and other businesses,” said the CBI.
The investigative agency has alleged that the company misrepresented the facts and inflated the sales, stock holding levels and trade debtors in the balance sheet, and the bank officials had shown undue favours during the processing, sanctioning and enhancement of loans from time to time.
After investigation, charge sheets in seven cases have been filed for causing an alleged loss to various banks, such as Indian Overseas Bank to the tune of Rs 297.80 crore; SBT to the tune of Rs 133.61 crore; Dena Bank to the tune of Rs 183.83 crore; Corporation Bank to the tune of Rs 60 crore; IDBI Bank to the tune of Rs 40 crore; SBI to the tune of Rs 122.07 crore and EXIM Bank to the tune of Rs 80.30 crore.
According to the CBI, the private company of Mumbai purportedly engaged in manufacturing of aluminium foil containers, aluminium foil rolls, lids and other related products etc.