This Article is From Jun 11, 2021

Rs 52-Crore Fraud At Union Bank, CBI Probes Delhi Firm

Five Core Electronics Ltd and its directors -- Amarjeet Singh Kalra, Surinder Singh Kalra, Jagjeet Kaur Kalra and Surinder Kaur Kalra -- have been accused of cheating, forgery, criminal breach of trust and corruption.

Rs 52-Crore Fraud At Union Bank, CBI Probes Delhi Firm

CBI sources said the accused fled the country in 2019.

New Delhi:

The Central Bureau of Investigation has registered a case against a Delhi-based firm and its directors for a bank fraud to the tune of Rs 52 crore. Officials in the agency said the accused fled the country in 2019.

Five Core Electronics Ltd and its directors -- Amarjeet Singh Kalra, Surinder Singh Kalra, Jagjeet Kaur Kalra and Surinder Kaur Kalra -- have been accused of cheating, forgery, criminal breach of trust and corruption.

The Union Bank of India bank has alleged that the company -- which exports electrical and electronics goods -- approached them in 2015 to take over the credit facilities from Bank of Baroda.

After taking over the credit, the bank sanctioned around Rs 70 crore as fresh credit facilities to the company, which was extended to Rs 111 crore in 2016. But due to non-payment of dues, the account was declared a non-performing asset in June 2019, with an outstanding of Rs 52 crore.

"Forensic audit revealed several irregularities including diversion of funds for creation of personal assets like purchase of sovereign gold bonds, investments in share markets etc and diversion of funds to sister concerns. Discrepancies have been observed in the export bills and invoices," the bank alleged in its complaint to the CBI.

The account was declared "fraud" in November 2019 and the matter was reported to the Reserve Bank of India.

A raid by the Directorate of Revenue Intelligence in February that year revealed that the unit was locked and no one was available at the factory.

Sources in CBI told NDTV that they received the complaint on June 3 and it is learnt that the accused have fled the country in 2019.

"Efforts are being taken to trace them. It is suspected they have defrauded more banks but as on date, we have received complaint from only one bank," an official said.

Significantly, the recovery plea filed by Andhra bank and Union Bank of India in the Debt Recovery Tribunal has been a non-starter for last two years, as the banks haven't cleared the defects in their plea and it has not been admitted yet.

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