Mumbai News: CBI Launches Probe In Rs.8.2 Cr SBI Fraud Case

Mumbai: The Central Bureau of Investigation (CBI) has launched an investigation against a private company and its directors for allegedly causing a wrongful loss of Rs 8.23 crore to the State Bank of India (SBI).

According to the Special Task Branch of CBI at Navi Mumbai, a complaint was received dated 21.12.2023 from Mata Prasad, Assistant General Manager, SBI, wherein it was alleged about fraud, diversion of funds, misappropriation of money and criminal Breach of Trust by a company, engaged in trading of automobiles and allied business and its directors/guarantors unknown public servants and private persons.

Details On The Case

“Between 2015 and 2021, the borrower company situated in Bhavnagar had availed financial facilities from the complainant bank SBI. Subsequent to the availment of the financial facilities from the complainant Bank, the company purchased vehicles of Rs.6.22 crore from an automobile company during 27/10/2020 to 25/02/2021 through 22 invoices and funds were remitted from account of the bank,” said a CBI official.

He added, “The cars supplied by the automobile company were sold by the borrower company and the sale proceeds were supposed to be credited in the account of the complainant bank. However, the same were not credited to the account of the complainant bank with the intention to defraud the bank and siphon off the fund. The account of the borrower company turned NPA on 20/04/2021. The act of the borrower caused wrongful loss to the SBI to the tune of Rs. 8.23 crore on the date of NPA.”

As per the bank’s complaint, the bank had sent various notices to the borrower and given them opportunities to explain about their defence with respect to the allegations against them. However, the borrower did not respond to the notices. The police have registered a case under section 120B (criminal conspiracy), 406 (criminal breach of trust) and 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code and relevant sections of the Prevention of Corruption Act.

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