Rs 87.88 cr bank fraud
Excelsior Correspondent
JAMMU, Nov 9: The Central Bureau of Investigations (CBI) has arrested two former Directors of a private paper manufacturing company in a multi-crore bank fraud case in Kathua district, an official said today.
The case against Bharat Papers Ltd and others, including its Managing Director and Directors, was registered on February 12, 2020 on a complaint from State Bank of India’s, SAM Branch in Ludhiana, Punjab, a CBI spokesperson said.
The two then Directors Anil Kumar and Praveen Kumar were arrested on Tuesday evening and produced before a Magistrate who remanded them to seven days in CBI custody today.
According to the CBI, the accused in the conspiracy with unknown SBI officials had cheated the bank of Rs 87.88 crore (which with interest amounted to Rs 121.13 crore) from 2006 to 2019 by illegally removing machinery and other parts without getting prior permission and without informing the lender banks.
The proceeds or value of such machines and motors were not deposited in the account, the spokesperson said. It was further alleged that the accused stealthily removed the imported and indigenous machinery of pulp section and other parts from the factory without the knowledge of the bank, a statement from the agency said.
It was also alleged that the accused illegally sold machinery parts as scrap and arranged fake invoices to cover up the illegal sale, the CBI said and added that the accused allegedly diverted funds from the loan account.
Arrests by the CBI in bank fraud case of Kathua camp just a day after the agency arrested four more accused in Sub Inspectors and Junior Engineers (Civil) paper leakage exam. The CBI has so far arrested 17 persons in the scam while more arrests are on the cards.
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