The CBI has booked Faridabad-based firm Richa Industries Ltd. and 11 directors of the company for defrauding Indian Overseas Bank and Union Bank of India to the tune of about Rs 237 crore.
The agency registered the case following a complaint from the Indian Overseas Bank under various Indian Penal Code (IPC) Sections relating to criminal conspiracy, criminal breach of trust, forgery of valuable security, forgery for the purpose of cheating, using forged documents as genuine and criminal misconduct by public servants.
The loan account of the accused firm became NPA and the Bank alleged in its complaint that the accused firm and its directors besides unknown public servants cheated the bank to the tune of Rs 236.74 crore from 2015 onwards across Faridabad, Haryana and Udham Singh Nagar, Uttarakhand.
The accused company had allegedly siphoned off the bank’s funds and cheated the lending banks to the tune of Rs 236.74 crore.
The account of the accused company was declared fraud on April 15 by Indian Overseas Bank and on August 21 this year by the Union Bank and reported to the Reserve Bank of India.
Among other issues, the company was flagged by the auditor to have indulged in booking of loss by overstating consumption of entire stock during 2015-16 and 2016-17 which was abnormally high as compared to the past trend.
It also allegedly diverted funds from the textiles division to the PEB (Pre Engineering Buildings) division.