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CBI ARRESTS TWO PROMOTERS/DIRECTORS OF A FIRM IN ON-GOING INVESTIGATION OF CASE RELATING TO CHEATING BANKS 3871.71 CRORE

May 05, 2017 09:15 PM

New Delhi/Kolkata (Face2News)

The Central Bureau of Investigation has today arrested two accused, both Promoters-Directors of a private firm based at Kolkata & Delhi in an on-going investigation of a case to unearth the larger conspiracy and to trace out the diversion and end use of funds.A case was registered against a private firm based at Kolkata & Delhi; its Promoters-Directors; other executives and other unknown persons under section 120-B r/w 420, 467, 468 & 471 of IPC on a complaint of UCO Bank relating to the allegations of cheating 14 consortium member banks (lead by UCO Bank) to the tune of Rs. 3871.71 crore (approx). It was also alleged that the accused had defrauded 14 public sector banks through diversion of funds, showing high cost of false capital expenditure, suspected investment in related companies, falsely inflating debtors, sale at higher price to related / doubtful parties, fraudulent high sea transactions, non compliance with fund utilization, corporate guarantee without permission of consortium members etc.

It was further alleged that there was no genuine business with the debtors/creditors and false bills were issued by / in favour of said private firm. More than 150 shell firms were allegedly arranged through a group of brokers against fixed commission, for obtaining false invoices and diversion of bank funds. It was also alleged that some of the suppliers were non-existent and some other firms were having no genuine business with said firm and had routed the funds of said private firm through their accounts. One of the accused was the Chairman of the company during the period of fraud, and was settled out of India. A Red Corner Notice was published against accused by the UAE authorities for misappropriation of AED 160 million from United Arab Bank by submitting alleged forged documents of its business deals.The arrested accused will be produced tomorrow in the Designated Court, Delhi. Further investigation is continuing.

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