CBI registers case against Delhi firm, its promoter and CMD for causing Rs 1528 crore loss to consortium of 16 banks

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The Central Bureau of Investigation (CBI) has registered a case against a Delhi firm and others for allegedly committing a Rs 1528 crores fraud against a consortium of 16 banks led by the Bank of India.

The suspects include the promoter and CMD of the private firm, Director/Guarantor and two Corporate Guarantors; along with unknown public servants and others, CBI said today.

It was alleged that the private company, engaged in manufacturing of ferrous and non-ferrous metal, obtained credit facilities/loans etc from the consortium of 16 Nationalized and private banks from 2008 to 2013, with Bank of India as Lead Bank.

The account was classified as NPA in the books of accounts of Bank of India from 31 March 2014 due to the overdue status of the account in line with IRAC guidelines.

The account was then red-flagged by the Bank of India, as advised by RBI in May 2015, and was declared fraud in February 2016.

Searches were conducted today at various premises of the suspects including at Kangra and Paonta Sahib, District Sirmaur (Himachal Pradesh).