New Delhi, Nov. 4 -- The CBI has registered a case over an alleged USD 10 million fraud in India Exim Bank involving a UK-based company, its erstwhile directors and associates, officials said on Wednesday.
The agency filed the FIR acting on a complaint by G Selva Kumar, assistant general manager at India Exim Bank, alleging that it was cheated and suffered a wrongful loss of USD 10 million (around Rs 63 crore), the outstanding amount as of September 29, 2014, when the loan account was classified as a non-performing asset (NPA).
The FIR named Hanjer Biotech (Erith) Ltd, a UK-based company that has since been dissolved, its erstwhile directors and guarantors, Navi Infrastructure Engineering Pvt Ltd (NIEPL), Hume Synthesis Pvt Ltd, and unknown public servants among the accused.
It is alleged that Hanjer Biotech entered into an agreement with Navi Infrastructure for the supply of machinery for its recycling project in the UK.
"The borrower company requested the bank for a loan for the said project. The cost of the project submitted by the borrower company was USD 15.90 million, which was proposed to be funded by promoter(s)' contribution of USD 5.90 million and the balance by way of loan from Exim Bank," the complaint, which is now part of the FIR, alleged.
The bank's executive committee in Mumbai approved a term loan of USD 10 million in 2012, according to the FIR.
It is alleged that the machinery was never supplied and that the advances received for its purchase were diverted by extending loans to related parties, including Hume Synthesis.
The entire loan amount of USD 10 million was allegedly siphoned off, according to the FIR.
The account was declared NPA in 2014 and subsequently 'fraud', as per RBI guidelines, it said.
Published by HT Digital Content Services with permission from Millennium Post.