The Central Bureau of Investigation (CBI), further to a recent investigation, has taken action against a private logistics firm based in Mumbai. The firm stands accused of diverting loan funds, leading to a substantial loss of ₹173 crore to a consortium of banks, headed by the state-run Bank of India. Report regarding the same was published in the Hindustan Times which mentioned that the CBI initiated the case after receiving a written complaint from the bank's asset recovery management branch in Mumbai on September 14, 2022.
Alleged Criminal Conspiracy and Loan Diversions
The bank's complaint alleges that the accused firm, along with its directors, unidentified public servants, and other individuals, engaged in a criminal conspiracy between 2013 and 2016. Their objective was to defraud Bank of India and other participating banks in the consortium, including Union Bank of India, Canara Bank, State Bank of India, Bank of Maharashtra, IDBI Bank, Indian Overseas Bank, and Andhra Bank (merged with Union Bank of India).
Losses Incurred by Bank Consortium
The complaint states that the accused firm's actions resulted in a significant loss of ₹173.18 crore to the bank consortium. According to a CBI official, the logistics firm obtained credit facilities totaling ₹167.50 crore from the consortium but illicitly diverted the loan funds to its sister concerns. Presently, the CBI is investigating four of these sister concerns suspected of receiving the loan proceeds.
Violation of Loan Agreement and Payments to Unrelated Parties
The CBI official revealed that the diversion of loan funds to sister concerns violated the terms of the loan sanction agreement. The agency is also examining whether the accused firm transferred portions of the loan funds to seven other companies. In addition, the logistics firm allegedly made multiple payments to unrelated parties.
High Remuneration despite Financial Strain Raises Suspicions and Legal Actions
Despite the financial difficulties faced by the borrower, the accused company reportedly paid significant remuneration to its promoters and directors. This discrepancy suggests a malicious intent behind the firm's actions. Consequently, the logistics firm stands accused of illicitly profiting while causing losses to the bank consortium. The CBI has filed a First Information Report (FIR) against the accused firm, invoking relevant sections of the Indian Penal Code and the Prevention of Corruption Act. The sections cover offenses such as criminal conspiracy, cheating, and criminal misconduct.
In summary, the CBI's recent case against a Mumbai-based private logistics firm alleges that the company diverted loan funds, resulting in a substantial loss of ₹173 crore to a consortium of banks. The investigation revolves around a written complaint lodged by Bank of India. The accused firm is under scrutiny for its alleged involvement in a criminal conspiracy, loan diversions, and payments to unrelated parties. The CBI has taken legal action and registered an FIR to address these serious allegations.
Share
Tweet
