The CBI has conducted searches in the premises of a Madhya Pradesh-based private company and its directors, who allegedly cheated a UCO Bank-led consortium of ₹106.56 crore.
Narayan Niryat India Private Limited, located in Mandsaur, and its directors, Suresh Chandra Garg (since deceased) and Kailash Chand Garg, have been named as accused in the FIR. It is alleged that they cheated the consortium comprising the UCO Bank, the Corporation Bank (now merged with the Union Bank of India) and the Punjab National Bank during 2011-2013.
The accused indulged in diversion of funds, submission of false financial statements and other irregularities. “The searches were carried out in Indore and Mandsaur,” said a CBI official.
The company, which is into export of soya de-oiled cake and other merchandise, was initially sanctioned credit limits for ₹10.50 crore under the sole banking arrangement in March 2004. The limit was renewed/enhanced from time to time and the last sanction under the same arrangement was made in July 2010, for an aggregate limit of ₹37 crore.
In November 2010, the consortium sanctioned credit facilities with a limit of ₹110.50 crore. The account was declared a fraud in May 2017. A forensic audit revealed large-scale diversion of funds and other irregularities committed by the company and its promoters/directors, as alleged.
The audit report alleged that the company did not operate its all accounts with the consortium members and had opened 16 current accounts in other banks for making transactions. Export orders shown by the accused persons also appeared to be fake. No export bills were submitted to the lending banks.
Eight letters of credit for ₹54.96 crore issued by the three consortium banks had devolved, but the borrower did not arrange funds for the same. It was diverting funds to associate/sister concerns and had shown about ₹59.76 crore under the “loans and advances” head to several entities, the FIR mentioned.
