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Bank-fraud case: CBI carries out searches against Rohtak-based firm

Besides the company, its directors Lalit Kumar Jain, Rajesh Kumar Jain, Vijay Kumar Jain and others were also booked in the case, they said.

Published: 26th February 2021 09:42 PM  |   Last Updated: 26th February 2021 09:42 PM   |  A+A-

Raids

For representational purposes

By PTI

NEW DELHI: The CBI has booked Rohtak-based Lakshmi Precision Screws Limited for an alleged fraud of Rs 176.28 crore involving a consortium of banks and carried out searches at five locations in connection with the case on Friday, officials said.

Besides the company, its directors Lalit Kumar Jain, Rajesh Kumar Jain, Vijay Kumar Jain and others were also booked in the case, they said.

"It has been alleged that the said private company, through its proprietor and directors and in a conspiracy with others, defrauded the consortium of banks by misrepresentation or concealment of facts and false documents or information, making diversion of funds and disposing off mortgaged properties without the consent of the banks.

An alleged loss of Rs 176.28 crore (approximately) was caused to the consortium of banks -- Canara Bank and State Bank of India," CBI spokesperson Joshi said.

The company founded in 1968 became public three years later.

Engaged in the manufacturing of high tensile fasteners, the company had business with the Canara Bank since 1986.

Now, it was being financed by a consortium of the Canara Bank and the State Bank of India.

The account became a non-performing asset in 2018 and was declared a fraud the next year, the bank alleged in the complaint which is now part of the FIR, the officials said.

Searches were conducted at five places including Rohtak on Friday, which led to the recovery of incriminating documents, Joshi said.



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