The Central Bureau of Investigation (CBI) on Thursday conducted search operations at several locations in Mumbai in connection with an alleged Rs 58 crore bank fraud involving Mumbai-based Avaya Industries, and seized incriminating documents, the agency said in a statement reported by IANS.
Source: IANS via Hi India
The CBI said it registered the case on a complaint by the State Bank of India, Mumbai, against Avaya Industries, its directors and unknown public servants and private persons. According to the agency, the complaint alleges that the company and its directors fraudulently obtained credit facilities by misrepresentation, causing a wrongful loss of Rs 58.48 crore to the bank.
What the CBI alleges
The alleged fraud, according to the CBI statement, was carried out through fictitious sales and inflated stocks, suppression and non-recovery of export receivables, diversion of funds through unsecured advances, unauthorised routing of transactions through another bank, fabrication of debtor balances, and unauthorised sale or misrepresentation of mortgaged property and hypothecated assets. These are allegations made by the investigating agency and the complainant bank; no court has given a finding on them.
Searches were conducted on Thursday at several locations in Mumbai, including residential properties linked to the directors of Avaya Industries. The CBI said the seized material is being examined to ascertain the full extent of the alleged conspiracy, misappropriation and diversion of funds, and to establish the role of all persons involved. The statement did not announce any arrest in the Avaya case.
Separate Rs 210 crore case announced the same day
In a separate case mentioned in the same statement, the CBI said it has registered a case on a complaint by Indian Bank's Stressed Asset Management Branch against Chandra Proteco Limited and its officials in an alleged Rs 210 crore fraud involving five banks. The agency said it has booked the company's directors Ranjeet Gupta, Anilesh Gupta and Aparna Gupta, along with unknown public servants and unknown persons, for offences of criminal conspiracy and cheating and under the Prevention of Corruption Act.
Investigations in both cases are continuing, the CBI said.