Officials said on Wednesday that the Central Bureau of Investigation (CBI) has registered a bank fraud case of more than Rs 200 crore against Bangalore-based Steel Hypermart India Pvt Ltd and its directors.
CBI spokesperson RC Joshi said that the agency conducted searches at Shulagiri in Bangalore and Krishnagiri districts of Tamil Nadu on Wednesday.
Officials said that apart from the company, the FIR filed on the basis of a complaint by Indian Bank named its directors Mahendra Kumar Singhi and Suman Mahendra Kumar Singhi, and chartered accountant Mukesh Surana.
The bank alleged in its complaint that the company had availed credit facilities from the consortium of E-Vijaya Bank and Indian Bank between 2017 and 2019.
The account was declared a non-performing asset in April 2019 and later tagged as fraud in November of the same year, RC Joshi said.
The fraud resulted in a loss of Rs 168.39 crore to Indian Bank and Rs 31.99 crore to E-Vijaya Bank (now Bank of Baroda).
“It was further alleged that the lending company had increased its turnover, leveraging related / sister concerns, inflation of receivables, diversion of funds within related / sister concerns, to take advantage of higher working capital limits from banks. Along with the purchase transactions, Mr. Joshi said that the false / fraudulent accounts / statements etc. were deposited and the bank’s funds were deducted, causing damage to the said banks.
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