CBI FILES A CHARGESHEET AGAINST EIGHT ACCUSED AND A FIRM IN AN ALLEGED BANK FRAUD TO THE TUNE OF RS.4.91 CRORE (APPROX)

Press Release
New Delhi , 14.06.2013

            The Central Bureau of Investigation has filed a chargesheet before the CJM Court, Ernakulam(Kerala) against eight accused persons and a Ernakulam(Kochi) based firm in a bank fraud case involving discounting of a forged Letter of Credit (LC) wherein the sister concern of SBI namely, State Bank of India Global Factors Ltd. (SBIGFL) was cheated to the tune of Rs.4.91 crores(approx).

 

            Based on a complaint, a case was registered by the CBI on 06.02.2012 on the allegations of discounting of a forged LC submitted in the name of a Kochi(Kerala) based private company, represented by its two Partners wherein fake documents such as invoices, delivery challans and lorry receipts were submitted along with the forged LC by the accused persons. The eight accused conspired with each other to prepare/get prepared the fake/forged & false documents and submitted these documents as genuine ones and got discounted an amount of Rs.4.65 crore(approx) into the bank account held in the name of firm. The proceeds of crime were later withdrawn by two partners of the said firm and shared among themselves and other accused persons.

 

            During the investigation, an organized racket behind the forgery of the LC which extended from Kerala to different parts of Maharashtra and Gujarat was unearthed. The forged LC for Rs.4.91 crores(approx), purported to be issued by Union Bank of India, Narasanda Branch, Gujarat, was submitted to the Kochi Branch of SBIGFL along with fake & false supporting documents by the accused persons and got the LC discounted at Kochi. The amount discounted at SBI GFL, Kochi, was credited into the Bank account of the Kochi(Kerala) based private firm represented by its two partners in the Bank of Baroda, Ernakulam Branch.

 

            SBI Global Factors Limited (SBIGFL), a Public Sector company of Govt. of India, provides international factoring, domestic factoring and also offers Letter of Credit Bill Discounting (LCBD) facility.The LC is discounted only after receipt of confirmation of the LC from the issuing Bank.

 

            After investigation, CBI filed a chargesheet.

 

            The public is reminded that the above findings are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial. *************************

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