The Central Bureau of Investigation (CBI) has registered a case of financial institution fraud of over Rs 200 crore towards Bengaluru-based Metal Hypermart India Non-public Restricted and its administrators for losses incurred by a consortium of banks led by the Indian Bank, officers mentioned Wednesday.
The company on Wednesday carried out searches in Bangalore and Shoolagiri, Krishnagiri district of Tamil Nadu on the premises of the corporate and accused individuals, CBI spokesperson RC Joshi mentioned.
Moreover the corporate, the CBI has named its administrators Mahendra Kumar Singhi and Suman Mahendra Kumar Singhi, and chartered accountant Mukesh Surana in its FIR registered based mostly on a grievance from the Indian Bank, the officers mentioned.
The financial institution, in its grievance, alleged that the corporate had availed credit score services 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 yr, RC Joshi mentioned.
The fraud resulted within the lack of Rs 168.39 crores to Indian Bank and Rs 31.99 crore to e-Vijaya Bank (now Bank of Baroda).
“It was additional alleged that the borrower firm with a purpose to avail larger working capital limits from the banks, had inflated its turnover, made buy transactions with the associated/sister considerations, inflation of receivables, diversion of fund inside the associated/sister considerations, submitted false/fudged accounts/statements, and so on. and siphoned off the banks funds, inflicting loss to the mentioned banks,” Mr Joshi mentioned.
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