Two held by CBI in Rs 3871 cr bank fraud case

New Delhi: Two accused high officials of a private firm based at Kolkata and Delhi have been arrested for allegedly cheating banks to the tune of around Rs 3871.71 crore, a CBI statement said today. A case was registered against the firm its Promoters-Directors; other executives and other unknown persons under section 120-B , 420, 467, 468 and 471 of Indian Penal Code following a complaint filed by UCO Bank relating to the allegations of cheating its 14 consortium member banks to the tune of Rs 3871.71 crore (approx), it said.

The CBI said 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. "The complainant 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," the statement said. The CBI said that 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. (UNI)