CBI books Vikhroli agro firm over Rs 11.36 crore fraud causing loss to SBI
The Special Task Branch of the Central Bureau of Investigation (CBI) has registered a fraud case against a private agro-commodity trading company and its directors based in Vikhroli, Mumbai, for allegedly causing a loss of Rs 11.36 crore to the State Bank of India (SBI). The case, which was registered on June 30, details an alleged fraud that occurred between 2018 and 2022.
According to the CBI, the Vikhroli-based company was engaged in trading premium-quality agro commodities, including groundnuts, grains, and spices, for both domestic and export markets. The firm was first sanctioned a cash credit limit of Rs 9.50 crore in June 2018.
In March 2019, the company was also sanctioned a standby line of credit of Rs 1.40 crore for a period of 90 days, which it repaid in August 2019. The credit facilities were renewed in November 2019 with a fresh standby line of credit of Rs 1 crore. These facilities were subsequently restructured in November 2020.
A stock and receivables audit report later flagged major irregularities. The audit observed that the movement of turnover, collection of payments, sales, and purchases were conducted with the same party or inter-party entities. Furthermore, the valuation of the collateral security had declined by more than 45 percent, dropping from Rs 8.57 crore to Rs 4.65 crore.
A CBI official stated that the genuineness of the business transactions could not be ascertained due to several factors, including the lack of a proper place of business, common party debtors, and directors holding interests in other agro companies. Additionally, the audit revealed that all available stock was more than 10 months old, expired, and unfit for human consumption.
Following a complaint filed by the bank, the CBI registered the case under charges of criminal conspiracy, cheating, and criminal misconduct. The charges have been filed under the relevant provisions of the Indian Penal Code and the Prevention of Corruption Act.
