Press Release
New Delhi, 21.08.2015

        The Central Bureau of Investigation has registered a case U/s 120-B r/w 420, 468, 471 of IPC and Section13(2) r/w 13(1) (d) of PC Act 1988 & substantive offences thereof against a Mumbai / Surat based private firm & its five Directors; five other private firms and other unknown persons, including officials of Bank of Maharashtra & private persons/entities on a complaint from Bank of Maharashtra. It was alleged that during the period from September 2012 to March 2015, Directors/ officials of said Mumbai/Surat based private firm & others had entered into criminal conspiracy and induced the Bank of Maharashtra to sanction & disburse 2804 vehicle loans to said firm and its employees/drivers(under the “ Chalak Se Malak” scheme devised by the said firm) on the basis of false assurances and tampered/forged vehicle registration documents, thereby availed credit facility aggregating to Rs. 651.17 crores(approx) in the form of loans sanctioned to individuals driver/ employees of the said firm; term loans of Rs. 160.00 crores(approx) sanctioned to said firm themselves and CC limit of Rs.35.00 crores(approx) sanctioned to said firm, from three branches of Bank of Maharashtra at Pune/Surat.


        It was further alleged that having thus availed the loans by giving false assurance of getting the vehicles transferred to the said drivers by clearing past dues of the existing lenders, the Directors of said firm deliberately did not transfer the ownership to the said drivers/ employees, as result of which the amount of Rs. 651.17 crores(approx) disbursed by the bank towards finance of vehicles became outstanding in March, 2015. In many such instances verified by the bank, it was observed that the vehicles continued to remain hypothecated to the other lenders and were not transferred to the employees/ drivers of said firm despite repeated assurances by the said directors. It was also alleged that the major part of loans aggregating to Rs. 413.37 crores(approx) for purchase of new trucks was willfully diverted by the accused Directors of said firm and the trucks were never purchased. Similarly, the funds for transfer of old vehicles to the drivers were also diverted for other purposes.The said firm has allegedly availed term loans aggregating to Rs.90.00 crores(approx) and Rs. 70.00 crores(approx) on the premise of purchasing new trucks in the name of company, but instead of purchasing the new trucks, diverted the said fund for purposes other than those for which the loans were sanctioned and disbursed by the bank. In most of the instances, even the registration documents were not submitted to the bank whereas in several other instances, old vehicles were passed off as new. The said term loan accounts had also become NPA with an outstanding amount of Rs. 86.44 crores(approx) and Rs.63.22 crores(approx) respectively in March, 2015. The said firm allegedly defaulted on the cash credit limit of Rs. 35.00 crores (approx) disbursed by Bank of Maharashtra through Ring Road, Surat Branch, which caused further wrongful loss of Rs.35.46 crores(approx). Companies including associates allegedly were used for diversion purposes. The accounts turned NPA in March, 2015 and the aggregating alleged loss of more than Rs.800/- crores(approx) was caused to Bank of Maharashtra.


        Searches have been conducted yesterday at 10 places in Surat (Gujarat), Pune, Mumbai & Silvassa at the office and residential premises of accused.


        Further investigation is continuing.