The CBI has booked Mumbai-based Ruchi Global Limited and its directors for allegedly cheating a consortium of four banks of ₹188.35 crore.
The company’s associate entity, Ruchi Soya Industries Limited, has an exposure of ₹8,323 crore with a consortium of 21 lenders. The account was declared a fraud in August 2018 and a complaint has been filed by the IDBI Bank (Indore) with the CBI, as alleged in the FIR.
Apart from Ruchi Global Limited, the FIR names Umesh Shahra, Saket Barodia and Ashuthosh Mishra, residents of Indore in Madhya Pradesh, as accused. The company operates as a subsidiary of Ruchi Group of Industries. It is into wholesale sales of metals, metal ores, cereals and pulses.
The company had taken credit facilities from Bank of Baroda, Punjab Nnational Bank, J&K Bank and Oriental Bank of Commerce. Due to non-payment of dues, the account was classified as non-performing asset.
A forensic audit revealed several financial irregularities, including diversion of funds on the pretext of business transactions with several related entities, some of which had the same address. The directors of some entities were found to be the employees of Ruchi Global Limited, alleges the FIR.
In one case, Afro Atlantic Trading DMCC was shown as a major party with sales of ₹665.43 crore from January 1, 2016, to December 31, 2017; and receivables of ₹14.93 crore as on January 1, 2016, and ₹152.57 crore as on December 31, 2017. The borrower company had not submitted copies of the invoices and supporting documents involving ₹419.17 crore to the forensic auditor.
Penal order
The Securities and Exchange Board of India had also issued a penal order against Ruchi Global Limited for alleged involvement in transactions defrauding the commodities derivatives exchanges, in the matter of trading in castor seed contracts at the National Commission & Derivatives Exchange Limited.
The FIR mentions that an account of another group company, RSAL Steel Private Limited, was declared fraud in March 2019 and a complaint lodged with the CBI. That case involved an outstanding of ₹.49.93 crore.
