CBI FILES A CHARGESHEET AGAINST THEN DIRECTOR OF A PRIVATE COMPANY; SEVERAL BANK OFFICIALS & OTHERS ON THE ALLEGATIONS OF CAUSING HUGE LOSS TO BANKS

Press Release
New Delhi, 06.07.2017

        The Central Bureau of Investigation has filed a chargesheet before the Special Judge, Mumbai against then Director of Ahmedabad/Mumbai based private telecom company; said private telecom company through its Director; then Regional Head, SBI, Ahmedabad & Chairman, Mid Corporate Credit Committee, SBI, Ahmedabad; then DGM, IFB, SBI, Baroda & member of MCCC, Ahmedabad; then Member of MCCC, Ahmedabad; then Assistant Vice President & Credit Analyst SBI, Overseas Branch, Ahmedabad; then Chief Executive Officer, Guj Info Petro Ltd. Ghandhinagar and three other persons, on the allegations of causing huge loss to Banks.

        CBI had registered a case on a complaint received from a consortium of banks under section u/s. 120-B r/w 420, 467, 468, 471 of IPC against then Director of Ahmedabad/Mumbai based private telecom company on the allegations of committing a fraud on SBI, Vijaya Bank & Canara Bank and thereby causing a loss of Rs. Rs.126.40 crore (approx) to the banks. The said private telecom company was allegedly sanctioned several Credit Facilities which include Cash Credit, Term Loan & Non Fund Based Limits (LCs) to the tune of Rs 126 crore (approx). The said Director had taken over this company, from the earlier promoters. It was further alleged that this company had won the bid for launching of BSNL VVOBB( Voice and Video over Broad Band) project in the Southern & Eastern Zones of the country and the said Director inflated the project costs to obtain huge funds from the banks. It was also alleged that no machinery was actually supplied and Letters of Credit were opened favouring associate companies. These LCs were allegedly discounted and funds siphoned off.

        CBI had also arrested then Director of said private telecom company on 12.05.2017 during investigation of the case.

        After thorough investigation, a charge sheet was filed.

        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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