The Central Bureau of Investigation booked Ahmedabad-based Steel Konnet (India) Private Limited and others for allegedly cheating the Bank of Baroda and causing a loss of more than ₹100 crore.
The agency also named Varun Vijay Gupta and Vivek Vijay Gupta as accused, while the bank officials involved in managing the loan account have also come under the scanner.
The account had turned non-performing asset on December 29, 2016. However, it was reported to the Reserve Bank of India as a fraud only in September 2019.
According to the FIR, a forensic audit of the loan account allegedly disclosed a diversion of funds to the tune of ₹92 crore to various entities. Some of them were identified as Dharampal Iron & Steel Private Limited, Jagat Infra Project, Anupam Industries Limited, BishwesharLal Steel, Chhapaiya Trading Co., D.M. Trading Co. Avanti Trading Co., Dev Steel Traders, and Vraj Traders.
In its books of account, the company had shown to have incurred a net loss of ₹47.32 crore till March 2017. As per the records, it sold products to several companies, but made huge payments to them, raising suspicion that funds were diverted.
Suspect transactions were also detected with entities such as M.J. Agro Industries, Shree Sai Industries Private Limited, Shubhmangal Exim P. Limited and ShubhmangalInfracon Private Limited
In one case, the company paid ₹16.17 crore to Global Automach Solutions P. Limited for purchasing machinery, but received equipment worth only Rs.8.09 crore, as alleged.
