CHENNAI : Central Bureau of Investigation is conducting searches in five places in the city after registering a case against Chennai-based SLO Industries and Aran Steels Pvt Ltd & its promoters for allegedly defrauding Corporation Bank to the tune Rs 201.88 crore.
An FIR was registered after B R Akolkar, deputy general manager of Corporation Bank filed a complaint with CBI against SLO Industries, which is manufacturing ingots and steel structures, for defrauding and resorting to siphoning off of funds through associate concerns and its accounts maintained with other banks.
The bank alleged that loan amounts were round tripped wherein letter of credit (LC) beneficiary parties transferred funds similar to LC amount into borrower’s bank accounts to close the previous outstanding of letter of credit. It also alleged that the loan amounts have been invested in real estate business.
The bank said that SLO Industries, which has been enjoying credit facilities since 2003, has not provided provisional or audited financial statements for financial year 2015-16 and estimates for next two years. The company also did not allow the bank to access its books of accounts.
“By diverting the transactions to various banks such as City Union Bank, Kotak Mahindra Bank, ICICI Bank, the company prevented Corporation Bank from knowing its strengths and weaknesses,” the bank alleged.
The accounts of SLO Industries has been classified as fraud on March 9, 2018 following which a complaint was registered with CBI last month. The agency has booked directors Anil Kumar Ojha, Arun Sharma, Ashok Kumar Sharma of SLO Industries and Aran Steels, Guarantor of SLO Industries and other unknown persons.
Repco Bank CGM in the dock
The Central Bureau of Investigation has booked the chief general manager of Repco Bank P Kamala Kannan for allegedly abusing his official position as public servant and committing criminal breach of trust in misappropriation of loan and embezzlement of money to the tune of Rs 6.77 crore. The FIR was filed after Madras High court transferred Dharmapuri District Crime Branch file relating to the case to the CBI.