STOCK MARKET BSE NSE

CBI registers FIR in Rs 824 crore loan fraud by Kanishk Gold; carries out searches

The CBI officials said they have received the complaint and were in touch with the bank because of certain loopholes in the complaint which were to be rectified by the bank.

Published: 21st March 2018 11:30 PM  |   Last Updated: 21st March 2018 11:30 PM   |  A+A-

Image of a jewellery store used for representational purpose only.

By PTI

NEW DELHI:  The CBI has registered a case of alleged loan fraud of Rs 824. 15 crore committed by Chennai-based Kanishk Gold Pvt Ltd on a consortium of 14 banks led by the State Bank of India and carried out searches today, officials said.

The case has been registered by the Central Bureau of Investigation (CBI) on a complaint from the SBI on behalf of the 14-bank consortium, they said.

The CBI carried out searches at the official and residential premises of promoters of Kanishk Gold Pvt Ltd as it launched probe in the Rs 824-crore loan fraud case, the officials said.

The company engaged in manufacturing gold jewellery which was marketed under the brand name 'Krizz'.

It sold through distributors till 2014 but changed business model to B2B (business-to-business) in 2015 supplying to large retail jewellers, the SBI said in the complaint to the CBI.

The loan accounts of the company were taken over by the SBI from the ICICI in 2008.

Its banking arrangement was converted into a multiple banking arrangement in March 2011, it said.

The SBI alleged that while the "fraud" is to the tune of Rs 824. 15 crore, the security available with the it to cover the "loss" is only around Rs 156. 65 crore.

The CBI officials said they have received the complaint and were in touch with the bank because of certain loopholes in the complaint which were to be rectified by the bank.

The bank has alleged that the company had "misrepresented and falsified" the records and financial statements of the company to show a "rosy picture" since 2009 to avail credit facilities from it.

Kanishk Gold Pvt Ltd and its directors allegedly diverted the funds detrimental to the rights and interests of the bank, it said.

The SBI has requested the agency to register a case against Kanishk Gold Pvt Ltd, its promoter director Bhoopesh Kumar Jain and others.

The company's account was declared fraud and non-performing asset (NPA) in 2017-18 by various lending banks, it alleged.

 



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp