The CBI has booked Madhya Pradesh-based company Narayan Niryat and its director, Kailash Chand Garg, for allegedly cheating a UCO Bank-led consortium to the tune of over Rs 105 crore, officials said on Monday.
The agency has alleged that from 2011 to 2013, the company availed credit facilities to the tune of over Rs 110 crore from a consortium of banks consisting of UCO Bank, Corporation Bank (now merged with Union Bank of India) and Punjab National Bank, they said.
The CBI has also named another director of the company, Suresh Chand Garg (who died), as accused in the FIR.
To allegedly cheat the banks, Narayan Niryat and its directors resorted to various mala fide activities such as diversion of bank funds through its associate and sister concerns without transacting any goods, improper reporting in financial statements and balance sheets, the officials said.
"Further, the complainant bank (UCO Bank) has requested in the complaint for investigation of the role of unknown public servants in the above said fraud committed upon the banks," the CBI FIR alleged.
The bank, in its complaint, has alleged that the directors, after availing credit facilities, defrauded the banks and willfully diverted the banks' funds and put the banks to a huge wrongful loss and corresponding wrongful gain to themselves and misused the public money.
"We further inform you that the company has submitted a Compromise Proposal of Rs 37 crore to all three consortium banks against the total outstanding Rs 106.56 crore, which was sanctioned by our bank but due to non-compliance of terms and condition of the OTS by company, same has been failed," UCO Bank has said in its complaint to the CBI which is now a part of the FIR.