The Central Bureau of Investigation (CBI) has registered a case against Indian Technomach Co Ltd, its director Rakesh Kumar Sharma, and others for allegedly defrauding a consortium of 16 banks led by Bank of India to the tune of over Rs 1,528 crore, officials said on Wednesday.
The CBI conducted searches at various premises of the accused, including those in Kangra and Paonta Sahib in Himachal Pradesh.
The Delhi-based firm has its unit in Himachal Pradesh and is involved in manufacturing of ferrous and non-ferrous metals. The FIR was registered against Rakesh Kumar Sharma, the company, another director and guarantor Vinay Kumar Sharma, two Kolkata-based corporate guarantors, Gurupath Merchandise Ltd and Thunder Traders Ltd.
“The accused allegedly conspired with each other to defraud the banks and caused a loss of Rs 1528.05 crore (approx) to the consortium of 16 banks led by Bank of India. The consortium banks were Bank of India, Union Bank of India, Andhra Bank, Punjab & Sind Bank, Indian Overseas Bank, State Bank of Hyderabad, Central Bank of India, Corporation Bank, HDFC Bank Limited, Oriental Bank of Commerce, Saraswat Co-operative Bank, State Bank of Patiala, UCO Bank, Allahabad Bank, Standard Chartered Bank & DBS,” the CBI said.
According to the FIR, Indian Technomach Company Limited, had taken credit facilities from the consortium of 16 nationalised and private banks during 2008 to 2013 with Bank of India as lead bank. However, the account has turned into a non-performing asset because of alleged defaults on payments.
“The accused had allegedly conspired with an intention to defraud the banks through said acts and by diverting the funds from the loan account and thus caused loss of Rs. 1528.05 crore to the consortium of the banks. The account was classified as non-performing assets (NPA) in the books of accounts of Bank of India with effect from March 31, 2014, due to overdue status of the account in line with IRAC guidelines,” the CBI said in its statement.
The account was red flagged by the Bank of India, as advised by the Reserve Bank of India in May, 2015 and was declared fraudulent in February, 2016.