The Central Bureau of Investigation (CBI) has lodged an FIR against an Assam-based private firm and its two directors for allegedly committing a loan fraud of Rs 65.73 crore.
According to the FIR, Santosh Jaiswal and Padma Nath Deka, the directors of Brahmaputra TMT Bars Pvt. Ltd, availed a Term Loan facility of Rs 9 crore and Fund-Based Working Capital of Rs 6 Crore in March 2006, along with a Non-Fund-Based Limit of Rs 3.50 Crores from SBI for setting up a Billets Plant.
The FIR further stated that in March 2009, another Fresh Term Loan of Rs 9.71 Crore was sanctioned in favor of the company, along with an enhancement of the Cash Credit Limit from Rs 6.00 Crore to 11.65 Crore and a Non-Fund-Based Limit of Letter of Credit from 3.50 Crore to 6.50 Crore.
“Again in November 2009, the CC Limit was enhanced from 11.65 Crores to Rs 24 Crores, and the LC Limit from 6.50 Crore to Rs 12.50 Crore. In April 2010, a Term Loan of Rs. was sanctioned while the CC Limit was renewed at the then-existing level of Rs. 24 Crore, and the Non-Fund-Based Limit was enhanced from 12.50 Crore to 18 Crore.
“In November 2010, the Borrower Company had gone for a 10 MW Captive Power Project (CPP) for which a Term Loan Limit of Rs 20 Crore was sanctioned under a Multi-Banking Arrangement (MBA), wherein Allahabad Bank and North Eastern Development Finance Corporation (NEDFI) were the other lenders,” the FIR read.
The CBI FIR stated that the borrower company and its directors submitted fake financial statements showing fictitious transactions so that the working capital, drawing power, and term loan could be enhanced from time to time by the bank.
Later, Allahabad Bank opted out of the MBA, and Assam Gramin Vikas Bank joined the MBA. In July 2013, the credit limits were finally revisited with a fresh working Capital Term Loan of Rs 10 Crore. The Fund-Based Working Capital Limit was reduced from 24 Crore to Rs 14 Crore.
The borrower Company, after availing the said Credit Facilities, had stopped servicing the interest and also the repayment of principal, violating the sanctioned Terms and Conditions of the loan facilities, which caused the slipping of the loan account to NPA in 2013 with an outstanding balance of Rs 65.73 Crore.
“The accused directors of the company colluded among themselves in committing the criminal activities like violating sanctioned terms and conditions, illegally diverting the borrowed fund, and committing illegal activities, including submission of fake financial statements, fabrication of fictitious transactions, diversion of funds, and misappropriation of funds for purposes other than for which the funds were sanctioned by the bank, with an intention to defraud the bank and to gain unlawfully at the cost of the bank’s funds. The aforesaid complaint was verified, and verification revealed the commission of cognizable offences, so this case is being registered,” the FIR reads.
CBI said that further investigation in the case is underway.