CBI Registers Two Separate Cases of Bank Frauds worth Rs 452 crore and Rs 72 crore in Gujarat

The Central Bureau of Investigation has registered two separate cases relating to bank fraud of Rs. 452.62 crore (approx) and Rs. 72.55 crore (approx).

The first case was registered on a complaint from the State Bank of India against a private firm-M/s. Varia Engineering Works Pvt. Ltd based at Ahmedabad, Gujarat and others including its Directors and unknown public servants on the allegations of cheating the consortium of banks including State Bank of India to the tune of Rs. 452.62 crore (approx.) during the period 2013 to 2017.

It was alleged that, during the period 2013 to 2017, the accused entered into a criminal conspiracy to cheat the consortium of banks comprising of State Bank of India, Bank of India, Bank of Baroda, Central Bank of India, Bank of Maharashtra, Punjab National Bank and Vijaya Bank in the matter of various credit facilities extended by them.

In pursuance of the said conspiracy, the accused manipulated the books of accounts and siphoned off the funds of the banks, and thereby cheated the consortium of banks to the tune of Rs 452.62 crore (approx).

Searches were conducted on Thursday at four places including official and residential premises of the company and directors at Ahmedabad which led to the recovery of incriminating documents.

Meanwhile, the second case was registered on a complaint from Bank of Baroda against a private company-M/s. Gopala Polyplast Ltd based at Gandhinagar, Gujarat and others, including its Directors and unknown public servants on the allegations of cheating the Bank of Baroda to the tune of Rs. 72.55 crore (approx) during the period 2017 to 2019.

It was alleged that, during the period 2017 to 2019 the company availed various credit facilities which were enhanced and reviewed by the bank. It was further alleged that the continuous overdraft in the account and the devolvement of LCs resulted in the account becoming NPA.

It was also alleged that the forensic audit report of the bank had revealed the irregularities in the account and that the directors had diverted the loan proceeds, thereby causing loss to the bank.

Searches were conducted at five places including official and residential premises of company at Gujarat and Mumbai, which led to the recovery of incriminating documents.