CBI books Mumbai-based firm, its directors in Rs.167 cr loan fraud case

CBI has lodged an FIR of loan fraud of Rs.167 crore against a Mumbai-based firm Varron Auto Kast Ltd. and its directors

August 30, 2023

CBI books Varron Auto Kast Ltd, its directors in fraud loan case

Central Bureau of Investigation (CBI) has lodged an FIR of loan fraud of Rs.167 crore against a Mumbai-based firm Varron Auto Kast Ltd. and its directors.

A senior CBI official said that a written complaint in this respect was received from State Bank of India (Mumbai) against Varron Auto Kast Ltd. (Promoted by Shrikant Pandurang Sawaikar, since deceased), Pramod Madhukar Papani (director) (since deceased), and Sanjiv Vishvambhar Pophale (director).

It was alleged in the complaint that Varron Auto Kast Ltd. was a new venture of Varron Group. It was sanctioned term loan of Rs.167 crore by the SBI and Rs.155 crore each by Bank of India and Indian Overseas Bank (Consortium Members) out of a total project cost of Rs.721.54 crore, for the purpose of setting up an auto component manufacturing complex at Nagpur.

“The company diverted funds to individuals for civil and construction work not backed by invoices thereby causing wrongful loss to the State Bank of India to the tune of Rs.167 crore to the SBI and corresponding wrongful gain to the company and its directors,” reads the FIR.

The official said that after receiving the complaint they filed an FIR under sections 120-B read with sections 420, 467, 468, and 471 IPC and section 13(2) read with sections 13(1)(d) of the Prevention of Corruption Act.

Further investigation into the case is underway.

[With Inputs from IANS]

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