CBI recovers paintings, watches, gold and diamond jewellery worth 12.50 Cr in a case of Rs 34615 CR loss to consortium of 17 banks

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New Delhi: The Central Bureau of Investigation has conducted further searches in an on-going investigation of a case related to alleged loss of Rs. 34,615/- Crore (approx.) to consortium of 17 Banks led by Union Bank of India.

CBI issued a statement about the search and seizure operation on Thursday 28 July but did not name the Group under investigation. The details of the case, however, point to DHFL and Wadhwans.

Two paintings made by F.N.Souza (1964) and another by S.H. Raza (1956) worth Rs.5.50 crore (approx); two watches of Jacob & Co & Frank Muller Geneve make worth Rs.5 crore (approx) and Gold & Diamond Jewellery including Bangles & Necklace worth Rs.2 crore (approx) have been recovered. It has been alleged that the promoters had acquired expensive items using the diverted funds.

During investigation, then CMD and then Director, both of private company based at Mumbai were arrested and both are presently in CBI custody.

A case was registered on 20 June 2022 on complaint from Union Bank of India, Industrial Finance Branch, Mumbai against private (Borrower) company based at Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servant(s) & private persons on the allegations that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of Rs. 34,615 crore (approx.) by siphoning off loans availed from the said banks & falsifying the books of said private (Borrower) company and creating Shell Companies/false entities, which had come to be known as “Bandra Book Entities”. It was alleged that the said private company & its promoters had created a number of shell companies & fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities. It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage & conceal dubious transactions. The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the said private (Borrower) company. Earlier, searches were conducted at various locations in Mumbai at the premises of accused which led to recovery of incriminating documents.

Further investigation is continuing.

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