CBI searches in premises of M.P.-based agency, its directors in fraud case
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The CBI has performed searches in the premises of a Madhya Pradesh-based non-public firm and its directors, who allegedly cheated a UCO Bank-led consortium of ₹106.56 crore.
Narayan Niryat India Private Limited, situated in Mandsaur, and its directors, Suresh Chandra Garg (since deceased) and Kailash Chand Garg, have been named as accused in the FIR. It is alleged that they cheated the consortium comprising the UCO Bank, the Corporation Bank (now merged with the Union Bank of India) and the Punjab National Bank throughout 2011-2013.
The accused indulged in diversion of funds, submission of false monetary statements and different irregularities. “The searches were carried out in Indore and Mandsaur,” mentioned a CBI official.
The firm, which is into export of soya de-oiled cake and different merchandise, was initially sanctioned credit score limits for ₹10.50 crore beneath the only banking association in March 2004. The restrict was renewed/enhanced occasionally and the final sanction beneath the identical association was made in July 2010, for an mixture restrict of ₹37 crore.
In November 2010, the consortium sanctioned credit score services with a restrict of ₹110.50 crore. The account was declared a fraud in May 2017. A forensic audit revealed large-scale diversion of funds and different irregularities dedicated by the corporate and its promoters/directors, as alleged.
The audit report alleged that the corporate didn’t function its all accounts with the consortium members and had opened 16 present accounts in different banks for making transactions. Export orders proven by the accused individuals additionally seemed to be pretend. No export payments had been submitted to the lending banks.
Eight letters of credit score for ₹54.96 crore issued by the three consortium banks had devolved, however the borrower didn’t organize funds for a similar. It was diverting funds to affiliate/sister considerations and had proven about ₹59.76 crore beneath the “loans and advances” head to a number of entities, the FIR talked about.
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