CBI files FIR against Loha Ispaat, its director for cheating SBI-led consortium of Rs.1017.93 cr
The Central Bureau of Investigation (CBI) has registered an FIR against Loha Ispaat Limited and it’s then chairman-cum-managing director Rajesh Gaurishankar Poddar for allegedly duping an SBI-led consortium of banks of Rs.1017.93 crore, officials said Monday. The agency said that the then CMD and others entered into a conspiracy during 2012-2017 to cheat the State Bank of India (SBI) and other five consortium member banks — Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank and Bank of Maharashtra — by way of availing working capital limit, term loan and NFB limits to the tune of Rs.812.07 crore (approx).
The action was initiated on a complaint from the SBI which alleged that Loha Ispaat and its director(s), guarantors, and unknown others have siphoned the bank’s funds by doing fictitious sale and purchase transactions with suspicious and non-existent entities. They conspired to make unlawful gain with an objective to defraud the creditors, the SBI complaint, and now part of the CBI FIR.
The forensic audit showed that the company indulged in the concentration of sales to siphon off bank finance by fictitious trade modes and improper adjustment entries to accommodate fictitious accounting, said CBI
The company’s account was declared NPA (non-performing asset) with effect from August 28, 2014, and later categorized as fraud by the Fraud Identification Committee of SBI in its meeting held on February 13, 2019, said the FIR filed by CBI. It was further alleged that the accused, in pursuance of the conspiracy, cheated the SBI and other five consortium member banks by way of fictitious sale and purchase transactions and fudging of accounts and also siphoned off the funds resulting in non-payment of outstanding loans to the extent of Rs.1017.93 crore, the CBI said in its statement.
“Searches were conducted at nine places including at Delhi, Mumbai, Raigarh, and Thane (Maharashtra) at the residential and official premises of the accused which led to the recovery of incriminating documents/ articles,” a CBI spokesperson said.
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Fudging, fictitious transactions & many more, hallmark of all Indian businessmen.