A private firm based out of Mumbai was recently brought under radar by The Central Bureau of Investigation (CBI), for criminal conspiracy and cheating. As per reports, a case has been filed against the private company which also has an office in Ahmedabad, and it is being said that the firm has caused a loss of INR 63.44 crore. Complaint was also made by the Bank of Baroda and other known banks from the consortium.
Report released by the CBI mentioned that the Assistant General Manager from one of the the Bank of Baroda branches has sent a complaint regarding the company being involved in trading steel products in the city. Information reveals that the business has been ongoing since 1964 from the registered Masjid Bunder office, and over the years, a corporate office was set up in Ahmedabad where the directors and other team works.
A report regarding the same was published in the Free Press Journal quoting the statement from the bank, which read, “The bank in its complaint has alleged that the borrowing entity had not utilised the finance from the lender for the specific purposes for which the finance was availed of but had diverted the fund for other purposes.”
Complaint filed with the CBI clearly stated that the forensic audit for the firm was conducted in October 2018 and the account was marked as a non-performing asset (NPA) in June 2016.
The report quoted the complaint which also stated, “The forensic audit revealed that the borrowing company, its promoters, along with other unknown persons, in pursuance of a well-knitted criminal conspiracy and with dishonest intention of causing wrongful loss to the bank and wrongful gain to themselves, diverted and siphoned off the funds disbursed to them dishonestly and misappropriated the amount.”
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