CBI Books Navi Mumbai Firm, Partners For Allegedly Causing ₹15 Crore Loss To Canara Bank Through Loan Fraud
Mumbai: The Economic Offences Branch of Central Bureau of Investigation (CBI) Mumbai has registered a case against a Navi Mumbai-based firm and its two partners for allegedly causing loss of Rs 15 crores to Canara Bank. The borrower company and its partners with fraudulent and dishonest intentions diverted and utilized the disbursed funds for purposes other than purpose for which funds were…
The Economic Offences Branch of the Central Bureau of Investigation (CBI) in Mumbai has registered a case against a Navi Mumbai-based firm and its two partners for allegedly causing a loss of Rs 15 crores to Canara Bank through fraudulent loan practices. According to the CBI, the borrower company and its partners, with fraudulent intentions, diverted and misused the disbursed funds for purposes other than those for which they were sanctioned.
The term loan of Rs 15 crores was sanctioned by the bank in August 2017 for the establishment of a cold storage project and the installation of 40 Bulk Milk Chilling (BMC) plants. However, the company defaulted on the repayment of principal in May 2019, and the account was declared as a Non-Performing Asset (NPA) in August 2019.
The complaint further revealed that the borrower had submitted false quotations for the loan, misrepresenting the costs of the BMC plant installations, and diverted funds by giving contracts to their group and sister concerns, without creating necessary assets.
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