The Central Bureau of Investigation (CBI) has registered a case of bank fraud of over Rs 200 crore against Bengaluru-based Steel Hypermart India Private Limited and its directors for losses incurred by a consortium of banks led by the Indian Bank, officials said Wednesday.
The agency on Wednesday carried out searches in Bangalore and Shoolagiri, Krishnagiri district of Tamil Nadu at the premises of the company and accused persons, CBI spokesperson RC Joshi said.
Besides the company, the CBI has named its directors Mahendra Kumar Singhi and Suman Mahendra Kumar Singhi, and chartered accountant Mukesh Surana in its FIR registered based on a complaint from the Indian Bank, the officials said.
The bank, in its complaint, alleged that the company had availed credit facilities from the consortium of e-Vijaya Bank and Indian Bank between 2017 and 2019.
The account was declared a non-performing asset in April 2019 and subsequently tagged as fraud in November that year, RC Joshi said.
The fraud resulted in the loss of Rs 168.39 crores to Indian Bank and Rs 31.99 crore to e-Vijaya Bank (now Bank of Baroda).
"It was further alleged that the borrower company in order to avail higher working capital limits from the banks, had inflated its turnover, made purchase transactions with the related/sister concerns, inflation of receivables, diversion of fund within the related/sister concerns, submitted false/fudged accounts/statements, etc. and siphoned off the banks funds, causing loss to the said banks," Mr Joshi said.
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