CBI books private firm, others for Rs 1,528 cr bank fraud

The Central Bureau of Investigation on Wednesday carried out raids in Himachal Pradesh's Kangra and Paonta Sahib, after registering a case against a private company, its officials, and others for allegedly causing a loss to the tune of Rs 1,528 crore to 16 banks.

According to the agency, Delhi-based private firm Indian Technomach, its CMD, other private individuals, and public servants conspired to defraud a consortium of 16 banks led by the Bank of India of Rs 1,528.05 crore.

The other banks were Union Bank of India, Andhra Bank, Punjab & Sind Bank, Indian Overseas Bank, State Bank of Hyderabad, Central Bank of India, Corporation Bank, HDFC Bank, Oriental Bank of Commerce, Saraswat Co-operative Bank, State Bank of Patiala, UCO Bank, Allahabad Bank, Standard Chartered Bank, and DBS.

The CBI alleged that that the private company, engaged in manufacturing of ferrous and non-ferrous metal, obtained credit facilities and loans from the consortium of 16 nationalised and private banks from 2008 to 2013.

"The accused had allegedly conspired with an intention to defraud the banks through said acts and by diverting the funds from the loan account and thus caused Rs 1,528.05 crore loss to the said consortium of the banks," it said in a statement.

The account was classified as NPA in the books of accounts of Bank of India from March 2014, then red-flagged by the bank, as advised by the RBI in May 2015, and declared a fraud in February 2016.