The Central Bureau of Investigation has today filed Chargesheet against 25 accused including Mumbai based Private Company; its Chairman & Promoter ; then CFO of said company; then Vice- President (Accounts) ; then Assistant Vice-President (Accounts); another person handling Group’s Offshore entities; then Statutory Auditor of said company and 18 other entities ( India based companies/Firms & Offshore entities) in the Designated Court at Delhi in a case related to fraud of Rs.22,842 Crore (approx).
CBI had registered a case on 07.02.2022 against Mumbai based Private Company ; its CMD and others including Directors, Corporate Guarantor & unknown persons. The complainant bank i.e. State Bank of India in its complaint had alleged that the accused had cheated the consortium of 28 banks, led by ICICI bank, causing fraud of Rs. 22,842 crore(approx). Huge amounts were allegedly transferred by the accused to its related parties and subsequently adjustment entries were made. It was further alleged that huge investment were made in its overseas subsidiary by diverting the bank loans. It was also alleged that funds from banks were diverted to purchase of huge assets in the name of its related parties.
Searches were earlier conducted around 13 locations on 12.02.2022 which led to recovery of several incriminating documents including books of accounts of borrower company, purchase / sales details, Share registers, various contract files etc. Further, LOCs against the accused had been opened.
During investigation conducted at various places, several witnesses including officials of said private company, Bank Officials, etc were examined. CBI arrested then Promoter & Chairman on 21.09.2022 and presently he is in judicial custody.
It was found during investigation that the accused conspired with others & got incorporated several entities both within India and outside India with the help of his employees & continuously kept on diverting & siphoning off bank funds. It was also revealed that the accused fraudulently siphoned off huge amount of bank/business fund of said private company and large number of personal assets in the form of immovable properties including luxurious flats, multistoried buildings & lands (having present value in crores), were created.
Further the accused are stated to have also misrepresented & falsified the audited books of said private company. False entries / information, with regard to Corporate Guarantees, Overstatement of subsidy amount and non-disclosure of non-fund based credit facilities availed from banks/Financial Institutions, were made in the audited financial statements.
Investigations have also revealed sham contracts by the said borrower company with its three Singapore based three offshore group entities fraudulently getting numerous Bank Guarantees issued between 2010-2013 resulting into alleged diversion and subsequent loss to the banks.
It was also found that borrower company siphoned off public money by establishing Letter of Credits in favour of another Singapore based firm purportedly for import of designs and drawings for various Cassels/hulls.
Investigation have also found diversion through creation of web of companies, part of which was used to acquire properties at prominent locations including in Mumbai and Surat. These include 4 luxurious flats in Mumbai, one residential tower in Mumbai having 14 flats, and commercial land measuring around 5-6 acre in Surat. After investigation, a chargesheeted has been filed.
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