BENGALURU: The Central Bureau of Investigation (CBI) has registered a bank fraud case of over Rs 200 crore against Bengalurubased Steel Hypermart India Private Limited and its directors for losses incurred by a consortium of banks led by the Indian Bank, the Central agency stated. The CBI on Wednesday car ried out searches in Bengaluru and Shoolagiri, Krishnagiri district of Tamil Nadu, at the premises of the company and the accused persons.
Besides the company, the CBI has named its directors Mahendra Kumar Singhi, Suman Mahendra Kumar Singhi and chartered accountant Mukesh Surana in its FIR, based on a complaint from the Indian Bank, the CBI spokesperson stated. The bank, in its complaint, has alleged that the company had availed credit facilities from the consortium of e-Vijaya Bank and Indian Bank between 2017 and 2019.
The account was declared a non-performing asset (NPA) in April 2019 and subsequently tagged as fraud in November that year, said the CBI officer. The fraud resulted in the loss of Rs 168.39 crore to Indian Bank and Rs 31.99 crore to e-Vijaya Bank (now Bank of Baroda), he added.
“It was further alleged that the borrower company in order to avail higher working capital limits from the banks, had inflated its turnover, made purchase transactions with the related/sister concerns, inflated receivables, diverted funds within the related/sister concerns, submitted false/ fudged accounts/statements and siphoned off the banks funds, thereby causing loss to the said banks,” he said.