The Central Bureau of Investigation (CBI) on Wednesday registered six separate cases against two Mumbai firms dealing in gold and jewellery for allegedly causing losses totally amounting to Rs1,530 crore to various banks.
Acting on complaints lodged by Central Bank of India, IDBI Bank ltd. and Vijaya Bank, the CBI registered six cases against two Mumbai based private firms dealing with gold and jewellery, one of their Chief Promoters and others for allegedly indulging in cheating and criminal conspiracy.
According to the CBI, standby letters of credit were opened by the banks for the import of gold by the two companies from foreign banks. Gold was imported to India and later the yellow was re-exported to 13 UAE based buyers.
When the companies did not honour their commitment made for letters of credit opened on their behalf, the SBlCs and Indian Banks were forced to make payments to the foreign banks.
As a consequence, Central Bank of India suffered Rs699.54 crore loss in one case and Rs255.24 crore loss in another case, while IDBI Bank ltd suffered Rs133.12 crore loss in one case and Rs55.68 crore in another case. The Vijaya Bank suffered losses amounting Rs233.15 crore and Rs153.71 crore in two separate cases.
“The total losses incurred by three banks amount to Rs Rs 1530 crore. We are investigating the role of bank officials and others in the cheating cases that we have registered two private firms and others,” a CBI spokesperson said.