The CBI arrests two promoters of a company in connection with a bank loan fraud of Rs 3,871 crore
New Delhi: The Central Bureau of Investigation on Thursday arrested two accused -Basmati rice exporter REI Agro’s promoters Sandip and Sanjay Jhunjhunwala in connection with investigations into allegations of cheating 14 consortium member banks (lead by UCO Bank) to the tune of Rs. 3871.71 crore.
The arrested accused are being produced in the designated Court in Delhi today.
The CBI is investigation the involvement of the Promoters-Directors of REI Agro based at Kolkata & Delhi. The CBI is not ruling out a larger conspiracy and investigations are on to trace out the diversion and end use of funds.
A case was registered against the Kolkata and Delhi based firm, its Promoters-Directors; other executives and other unknown persons under section 120-B read with 420, 467, 468 & 471 of Indian Penal Code on a complaint of UCO Bank relating to the allegations of cheating 14 consortium member banks (lead by UCO Bank) to the tune of Rs. 3871.71.
It was also alleged that the accused had defrauded 14 public sector banks through diversion of funds, showing high cost of false capital expenditure, suspected investment in related companies, falsely inflating debtors, sale at higher price to related and doubtful parties, fraudulent high sea transactions, non-compliance with fund utilization, and corporate guarantee without permission of consortium members.
It was further alleged that there was no genuine business with the debtors and creditors and false bills were issued by and in favour of the private firm. More than 150 shell firms were allegedly arranged through a group of brokers against fixed commission, for obtaining false invoices and diversion of bank funds. It was also alleged that some of the suppliers were non-existent and some other firms were having no genuine business with said firm and had routed the funds of said private firm through their accounts. One of the accused was the Chairman of the company during the period of fraud, and was settled out of India. A Red Corner Notice was published against accused by the UAE authorities for misappropriation of AED 160 million from United Arab Bank by submitting alleged forged documents of its business deals.
Case registered against former Secretary, Health & Family Welfare, Govt of NCT, Delhi (GNCTD)
The Central Bureau of Investigation, on Thursday, also registered a case against a former Secretary, Health & Family Welfare, Govt of NCT, Delhi (GNCTD); three Delhi and Gurgain based private security firms through their directors and promoters. It was alleged that irregularities were committed in the engagement of three security agencies which were deployed in the hospitals of Delhi Government for six months on nomination basis. It was also alleged that the engagement of these security agencies was in violation of GFR, CVC Guidelines, Transaction of Business Rules & tendering procedure and conducted in a non-transparent manner. Undue benefits were allegedly given to these three security agencies including payments in excess of norms and thereby causing an alleged loss of Rs.10.50 crore to the public exchequer.