The Mumbai Branch of Central Bureau of Investigation (CBI) registered two separate cases against the private companies and their directors on the allegations of frauds. The alleged frauds have reportedly cost the bank over 200 crores.
The State Bank of India filed a complaint against a private company named as M/s Siddhi Vinayak Logistic Ltd (SVLL), based in Surat. They claimed that they had sanctioned term loans to the company for purchasing commercial vehicles.
However, the SBI claims that the private firm has cheated them by not hypothecating the vehicles and the loan proceeds were not used as per what they were sanctioned for. The alleged fraud has cost the SBI approximately Rs 214.11 crores.
After the searches were conducted in both Surat and Mumbai, the team had recovered the incriminating documents.
The case was lodged after SBI sent a written complaint on December 1 claiming that the accused persons were involved in a criminal conspiracy to cheat SBI during the period 2009 to 2014.
The CBI in the FIR stated that, “the company had committed fraud by availing finances from the bank to purchase vehicles, many of which have not been hypothecated to SBI for finances against the vehicles already hypothecated to other banks. The make and model of some of the vehicles are different from those it was sanctioned for. “
A case of cheating and criminal conspiracy has been registered by the CBI under the sections of Indian Penal Code and relevant sections of The Prevention of Corruption Act.
