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Three Fresh Cases Of Banking Fraud Reported

Three fresh incidences of financial fraud have come to light as the CBI filed cases against a jeweler, a businessman and a public servant on complaints by three different banks earlier this week

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Political Climate Accused Of Encouraging The Promotion Of Black Money. Pixabay

Three fresh incidences of financial fraud have come to light as the CBI filed cases against a jeweler, a businessman and a public servant on complaints by three different banks earlier this week, an official said on Saturday.

On Thursday, the Central Bureau of Investigation (CBI) registered a case against Delhi’s Karol Bagh-based diamond jewelry exporting firm Dwarka Das Seth International for an alleged bank loan fraud of Rs 389.85 crore involving the Oriental Bank of Commerce.

The CBI on Wednesday filed a case against businessman Amit Singla and others on a complaint of the Bank of Maharashtra for a loan through forged documents and its criminal misappropriation and use.

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The same day, the agency also filed a case against Inder Chand Chundawat, then Senior Branch Manager in the Punjab National Bank (PNB)’s Barmer office in Rajasthan, for abuse of his official position.

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Earlier, cases of major financial frauds involving Rs 11,300 crore by diamantaire Nirav Modi and Rs 3,695 crore by Rotomac owner Vikram Kothari surfaced, in which the CBI has filed cases and made several arrests. Pixabay

 

After the PNB and the Bank of Baroda filed cases against Nirav Modi and Rotomac Global, the Oriental Bank of Commerce, the Bank of Maharashtra and Barmer office of the PNB rushed to the CBI as well with their complaints of fraud, leading to the agency filing three separate cases.

The Oriental Bank of Commerce has alleged that it was defrauded by Delhi jeweler Dwarka Das Seth International and its owner Sabhya Seth. The loans turned into non-performing assets (NPAs) way back in 2014, but the bank approached the agency on August 16 last year, after the company had folded up and Seth fled the country.

The CBI has started tracing India-based directors and partners of the company.

The Oriental Bank of Commerce complaint has alleged that the Dwarka Das Seth International took loans by way of letters of credit and other such credit facilities for gold jewelry export/import between 2007 and 2012 but failed to pay back.

A probe by the bank found that the company had indulged in round-tripping of funds through fictitious companies abroad and had utilized funds by discounting bills based on the letters of credit of foreign banks, which were either non-existent or had negative ratings.

ALSO READ: Punjab National Bank detects $1.8 bn fraud at a Mumbai branch, Links to Nirav Modi

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“We feel that Sabhya Seth of Dwarka Das Seth International Pvt Ltd had orchestrated an elaborate plan to dupe the bank,” the bank said in its complaint. Pixabay

Similarly, the Bank of Maharashtra has approached the CBI to lodge a loan default complaint against a Delhi businessman Amit Singla. The loan had turned into an NPA in 2013 and the bank has even sold a property kept as collateral to recover its dues, sources said.

The Bank of Maharashtra’s FIR names Singla, the proprietor of Delhi-based Ashirwad Chain Co, loan guarantor Roshan Lal Bhalotia, property valuation firm Tech Mach International and unknown officials of the bank.

It is alleged that Singla and his company took loans of Rs 9.5 crore through cash credit facility from the bank between 2010 and 2012. The accused allegedly submitted three properties in Delhi and Haryana as collaterals. The properties, at the time of taking the loan, were valued at over Rs 18 crore by Tech Mach International.

But, after the loans turned into NPAs, the actual market value of the properties was found to be only Rs 2.5 crore. One of the properties, a double-storied house owned by Roshan Lal in Rohtak, Haryana, was valued at Rs 4.85 crore while sanctioning the loan. When the bank sold it off to recover its dues, it fetched only Rs 73 lakh.

ALSO READ: PNB Fraud Fully Exposes the Malicious Intent Of Nirav Modi

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Similarly, a commercial property owned by the accused at Chandni Chowk in Delhi was valued by Tech Mach at the time of disbursal of the loans at Rs 4.95 crore, but it was actually worth Rs 31 lakh only.

Tech Mach was later removed from the panel of values by the bank.

In the complaint, the Bank of Maharashtra said: “The overvalued valuations were deliberately given in connivance with the borrowers and the guarantors … to fraudulently induce the bank to finance the borrower.”

The FIR also alleged that Singla had submitted inflated stock audit reports and balance sheets, apart from diverting the loans to sister concerns.

According to the complaint, the branch manager had defrauded the bank of over Rs 2 crore in 2011 and the bank had even suspended the official following an internal inquiry. (IANS)

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PM Modi Slammed for “Destroying” CBI: Congress on Alok Verma’s Case

The Congress on Tuesday slammed Prime Minister Narendra Modi after the Supreme Court reinstated Alok Verma as the Central Bureau of Investigation (CBI) Director, saying he has been exposed for "destroying" the premier investigating agency.

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Image: IANS

The Congress on Tuesday slammed Prime Minister Narendra Modi after the Supreme Court reinstated Alok Verma as the Central Bureau of Investigation (CBI) Director, saying he has been exposed for “destroying” the premier investigating agency.

“Modi adds another first to his list. After being the first Prime Minister to be exposed destroying the CBI before the Supreme Court, after having ruined the CVC’s (Central Vigilance Commission) credibility (requiring supervision by former SC judge), Modi has now become first Prime Minister to have his illegal orders set aside by the Supreme Court,” Congress spokesperson Randeep Singh Surjewala said in a series of tweets.

His remarks came soon after the Supreme Court judgment pronounced on a plea by Verma and NGO Common Cause challenging the government’s decision on the intervening night of October 23-24 to divest Verma of his charge as head of the investigating agency.

Reminding Modi that the government comes and goes but the integrity of the institutions survive, Surjewala hoped that the judgement would be a “lesson” to the Prime Minister about the strength of country’s democracy and the Constitution.

“Modiji please remember, governments have come and gone. Integrity of our institutions have survived. Let this be a lesson to you about the strength of our democracy and the Constitution. Let this be a lesson that howsoever despotic you may be, law catches up in the end,” he said.

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Central Bureau of Investigation (CBI). Wikimedia

Firing salvo at Prime Minister, the Congress leader said: “After making CBI Chief suffer the consequences of your illegal decision for three months, will you show the courage to return three months of lost tenure? Unless you are afraid of investigation into Rafale scam.

“Modi equals to ‘Muzzling of Democratic Institutions’. First, you lose four economic advisors in a row including two RBI Governors. Second, four Supreme Court judges go public on Judge (B.H.) Loya, then you destroy credibility and competence of the CBI and CVC. This is your model of ‘minimum governance, maximum government’,” he added.

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Congress leader Abhishek Manu Singhvi questioned the Supreme Court verdict asking what has changed now.

“Before the Supreme Court verdict; Alok Verma didn’t have powers of CBI Chief, couldn’t take any decision on policy or investigation. After Supreme Court verdict: Ditto,” Singhvi tweeted. (IANS)