Hyderabad: Bank fraud of Rs 67.71 crores committed, CBI registers case

Hyderabad: A complaint has been registered against a private company by the Central Bank of India, Hyderabad on the allegation of causing a loss of Rs 61.71 crores (approx) to the bank. The Central Bureau of Investigation (CBI) filed the case.

According to a press release by the CBI, the complainant alleged that the private company, from 2017 to 2018, had availed a cash credit, term loan, and bank guarantee to the tune of Rs 65.70 crores. The account became a non-performing asset (NPA) on August 30, 2018, and the total outstanding was Rs 62.46 crores(approx).

Once the account became a non-performing asset the borrower repaid the amount of Rs 80 lakhs.  It was further alleged that the firm siphoned off the majority of funds through cash withdrawals, by transferring funds to parties not related to the business.

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In-flow and out-flow transaction of funds was allegedly shown with some firms just for generating fake turnover in the accounts. The collateral securities were gold-plated and overvalued to get enhanced credit limits from the bank. 

The bank was defrauded by the accused by allegedly siphoning off the funds from banking channels; adopting various methods; misrepresenting facts and overvaluation of the stocks to avail more drawing power than eligible, which resulted in an alleged loss to the tune of Rs 61.71 crores(approx) to the bank.

A search operation conducted in Nellore in Andhra Pradesh led to the recovery of incriminating documents.

A case has been registered and further investigations are on.

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