Wednesday November 21, 2018
Home Business Three Fresh C...

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

0
//
fraud
Political Climate Accused Of Encouraging The Promotion Of Black Money. Pixabay
Republish
Reprint

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.

ALSO READ: Bank of Baroda officials under CBI custody in Forex case

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.

fraud
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

fraud
“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

fraud

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)

Click here for reuse options!
Copyright 2018 NewsGram

Next Story

CBI Writes to Cambridge Analytica, Facebook And GSR Regarding Data Breach Cases

The CBI got the reference from the Ministry of Electronics and Information Technology, in July, to investigate the role of Cambride Analytica

0
Case Against NDTV Founders
Central Bureau of Investigation (CBI). Wikimedia

The CBI has written to UK-based Cambridge Analytica and Global Science Research (GSR) and US-based Facebook, seeking information in connection with its probe into allegedly illegally obtaining social networking site data of Indians, sources said on Monday.

According to Central Bureau of Investigation (CBI) sources, the agency has written to the Cambridge Analytica’s New York City office, GSR office in UK and Facebook’s US office.

The agency’s moves comes in the wake of a “Preliminary Enquiry (PE)” it registered against the firms after receiving a reference from the Centre to start a probe into the matter on August 8.

The CBI got the reference from the Ministry of Electronics and Information Technology, in July, to investigate the role of Cambride Analytica.

Facebook
Facebook App on a smartphone device. (VOA)

Union Information Technology Minister Ravi Shankar Prasad on July 26 had also told Parliament that the government has ordered the CBI to probe and find out if the British company had violated Indian laws.

Cambridge Analytica — a company owned by the hedge fund billionaire Robert Mercer — declared bankruptcy this year following allegations that it used personal information harvested from 87 million Facebook accounts to help Donald Trump win the 2016 US presidential election.

Also Read- Apple Responds to Disappearing iTunes Movie Purchase Issue

The firm is accused of mining personal information without authorisation in early 2014, to build a system that could profile individual US voters, in order to target them with personalised political advertisements. (IANS)