Massive CBI crackdown against bank fraud: Searches at 187 locations

The Central Bureau of Investigation (CBI) carried out a large scale operation against bank fraud on Tuesday. The agency conducted searches at 187 places spread across the country. The searches were carried out in 12 states and three union territories. According to the agency, the searches were carried out in Andhra Pradesh, Chandigarh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, Dadra & Nagar Haveli.

42 cases of bank frauds involving Rs 7200 crore (approx.)

The ​agency has registered around 42 cases of bank frauds involving Rs. 7200 crore (approx.). The banks involved (including consortium members) are Andhra Bank, Oriental Bank of Commerce, Indian Overseas Bank, SBI, Allahabad Bank, Canara Bank, Dena Bank, Punjab & Sind Bank, Punjab National Bank, Central Bank of India, Union Bank of India, IDBI Bank, Bank of Baroda, Bank of Maharashtra and Bank of India. Out of these 42 cases, there are 4 cases which are more than Rs. 1000 crore (approx.) and 11 cases of fraud amount of Rs.100 crore (approx.) to Rs.1000 crore (approx.).

​Prominent Cases 

A case has been registered against a Malad (East), Mumbai / Bhopal based private company; its 5 Directors/Additional Director/Guarantors and unknown public servants on the allegations that the accused Directors and Guarantors of the said Mumbai / Bhopal based company engaged in bulk trading of agro commodities, in connivance with unknown bank officials & others fraudulently availed credit facilities of Rs. 6000 crore (approx.) from SBI, Bhopal by resorting to falsification of accounts and forgery of documents, such as a bill of lading, falsely showing the movement of goods etc. The company allegedly siphoned off the funds & defaulted in payment of the dues and caused loss of Rs. 1266.63 crore (approx.) to the bank.

Case registered against Chennai based private company

​Another case has been registered against a Chennai-based private company; its promoter; Managing Director and 7 other office bearers including Chief Accounts officer and unknown public servants/unknown others on the complaint of IDBI Bank Ltd. on behalf of other Consortium member Banks viz. Allahabad Bank, Indian Overseas Bank, Syndicate Bank, State Bank of India, Dena Bank (now Bank of Baroda), Bank of Maharashtra, Bank of India, Bank of Baroda, Oriental Bank of Commerce, UCO Bank and Canara Bank for cheating and causing loss of Rs. 1083.14 crore (approx.) to the banks.

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Company allegedly defrauded Bank of Baroda

​A case has also been registered against Chairman and Directors of a Varanasi based private company and unknown public servants on the allegations of submitting a wrong stock statement and Balance Sheet to induce Bank of Baroda for fraudulent and dishonest sanction of Bank loan. The company has allegedly defrauded Bank of Baroda to the tune of Rs. 518.44 crore (approx.) as on 31.12.2018. It was further alleged that the said company has also defrauded Punjab National Bank to the tune of Rs. 517.99 crore (approx.) adopting the same modus-operandi. The agency maintains that ​during searches, incriminating documents were recovered. Sources say that the searches would continue for the next few days.

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