Friday, 5 May 2017

CBI arrests two private firm promoters for cheating banks of Rs 3871.71 crore-The Total Investment & Insurance Solutions

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5 May 2017

The Central Bureau of Investigation on Thursday arrested two promoter-directors of a Kolkata and Delhi based private firm in an on-going investigation related to cheating banks to the tune of approximately Rs 3,871.71 crore. The Total Investment & Insurance Solutions

Sandip Jhunjhunwala and Sanjay Jhunjhunwala both promoters-directors of REI Agro, were picked up as part of the probe to unearth the larger conspiracy and trace the diversion and use of funds, a CBI statement said. The Total Investment & Insurance Solutions

A case was registered against the firm, including its promoters-directors and other executives on a complaint of UCO Bank. The Total Investment & Insurance Solutions

The complaint related to allegations of cheating 14 consortium member banks (led by UCO Bank) to the tune of approximately Rs 3,871.71 crore.

It was alleged that the accused defrauded 14 public sector banks through diversion of funds, showing high cost of false capital expenditure, suspected investment in related companies, falsely inflating debtors, sale at higher price to related or doubtful parties, fraudulent high sea transactions, non compliance with fund utilisation, corporate guarantee without permission of consortium members etc. The Total Investment & Insurance Solutions

There were also accusations about the absence of genuine business with the debtors or creditors and false bills were issued in connection with the private firm.

Over 150 shell firms were allegedly arranged through a group of brokers against fixed commission, for obtaining false invoices and diversion of bank funds.

"It was also alleged that some of the suppliers were non-existent and some other firms were having no genuine business with said firm and had routed the funds of said private firm through their accounts," the CBI said. The Total Investment & Insurance Solutions

As one of the accused was the chairman of the company during the period of fraud, and settled out of India, a Red Corner Notice was published against him by the UAE authorities for misappropriation of United Arab Emirates Dirham (AED) 160 million from United Arab Bank by submitting alleged forged documents of its business deals.

The arrested accused will be produced at the designated court in Delhi on Friday.The Total Investment & Insurance Solutions

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