Hyderabad: Disputed properties given as collateral
The credit facilities included Cash Credit, Term Loan and Letter of Credit.
Hyderabad: One more city-based firm was booked by the Central Bureau of Investigation for allegedly defrauding a bank to the tune of Rs 65.39 crore. The case was registered following a complaint received from State Bank of India, Mid Corporate Regional Office, Hyderabad for cheating the bank to an extent of '65.39 crore(approx).
According to the First Information Report registered by the CBI, it was alleged that the Hyderabad based private company has been banking with State Bank of India, since 2009 after taking over the credit facilities under availment from Axis Bank.
The credit facilities included Cash Credit, Term Loan and Letter of Credit. This account became Non Performing Asset on 30.04.2014 and was subsequently declared as fraud and reported to RBI in October, 2016. It was further alleged that the company had removed the stocks without the consent of the bank; the claims over the properties given as collateral were disputed; there was diversion of funds and there were heavy cash deposits and withdrawals. Officials said that investigation is in progress and more details about the fraudulent transaction and activities of the firm will emerge later.