CBI REGISTERS A CASE AGAINST CHAIRMAN, VICE CHAIRMAN AND MD OF A HYDERABAD BASED PRIVATE COMPANY FOR ALLEGED CHEATING AND FRAUD

Press Release
New Delhi , 09.07.2013

            The Central Bureau of Investigation has registered a case against the Chairman, Vice-Chairman, and Managing Director of Hyderabad-based private company and its Auditors u/s 120-B r/w 420, 468 & 471 IPC based on the complaint from Canara Bank in connection with the fraud perpetrated at its Prime Corporate Branch, Secunderabad(Andhra Pradesh).

 

            It is alleged in the FIR that during the period 2009-2011, the accused persons entered into a criminal conspiracy to cheat Canara Bank, Secunderabad Branch. In furtherance of the conspiracy, the accused had availed Open Cash Credit limit with periodical enhancements and multiple Short Term Corporate loans aggregating Rs.1230 crores(approx) from Canara Bank, thereby availing excessive bank finance without adequate drawing power by allegedly submitting false & fabricated financial statements and by suppressing the borrowings taken from other banks. It is also alleged that the accused utilized the Short Term Corporate loans for the purposes other than for which it were sanctioned by fraudulently diverting the proceeds of various credit facilities. They did not repay the credit limits and also the investments aggregating Rs.20 crores made by the bank in Non Convertible Debentures of the company. It is further alleged that the company had submitted false & fabricated balance sheets concealing its actual borrowings from Canara Bank and other banks and had also alienated the security hypothecated / mortgaged to Canara Bank. The total loss allegedly caused to Canara Bank is to the extent of Rs.357.77 crores(approx) as on 08.09.2012.

 

            Searches were conducted at the office premises of private firm at Hyderabad and the residential premises of the accused persons.

 

            Further investigation is continuing.

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