New Delhi, July 10 -- The Central Bureau of Investigation (CBI) on Friday conducted searches at multiple locations in Mumbai and Kochi in connection with an alleged bank fraud of Rs 133.52 crore involving Furnace Fabrica (India) Ltd.
The agency registered the case on July 9 on the basis of a complaint filed by the State Bank of India's Stressed Assets Management (SAM) Branch in Mumbai. According to the complaint, the accused entered into a criminal conspiracy to obtain enhanced credit facilities from the bank by furnishing false information and subsequently diverted the loan proceeds for purposes other than those for which they were sanctioned.
The FIR has been registered under relevant provisions of the Indian Penal Code and the Banking Regulation Act against A.R. Basheeruddin, Badri Prasad, Nezee Basheeruddin, Raiz Basheeruddin and Sanam Basheer, all directors of M/s Furnace Fabrica. The case also names certain unidentified public servants and private individuals.
According to the CBI, the accused allegedly misappropriated the bank funds, causing a wrongful loss of Rs 133.52 crore to SBI and corresponding gains to the company and its promoters. As part of the investigation, the agency carried out searches in Maharashtra and Kerala on July 10 and recovered documents and other incriminating material. The evidence is being examined to establish the modus operandi of the alleged fraud and trace the diversion and flow of funds.
"The CBI has so far gathered information indicating possible misappropriation of the loan funds by the accused," the agency said.
The investigation is continuing to ascertain the full extent of the conspiracy and identify the roles of all those involved, including unknown public servants.
Published by HT Digital Content Services with permission from Millennium Post.