Recently, the Central Bureau of Investigation (CBI) in India has investigated two bank fraud cases. One was worth ₹313.79 crore and the other worth ₹7926.01 crore (both approximate figures).
Allegations lead to an investigation
An amount of ₹7926.01 crore was allegedly taken by a Hyderabad-based company and its Additional Directors, CMD, and other associates. Indeed, Canara Bank submitted this complaint.
There were allegations that this company and its directors engaged in using many banking arrangements to take the credit amount. Canara Bank led the union for the complaint with many other banks. The allegation also mentioned that the suspected parties tried to fabricate books of accounts, tampered with balance sheets, faked stock statements, round-tripped funds, and more.
More allegations came that the accused parties have also embezzled funds from the bank. And they supposedly diverted the bank-approved loans to their account. After that, Canara Bank and the other banks associated with the accused suffered approximately ₹7926.01 crore. After the fraud report came out, the account has since turned NPA.
After the accusation, searches took place in the premises of the accused parties, reportedly. These occurred in Guntur and Hyderabad. Afterward, a lot of incriminating documents were found.
Details on the second case
Similarly, CBI received another fraud case against a Chennai-based private company and its Director, Chairman, and other public servants. Even some private individuals were involved. This complaint came from the State Bank of India (SBI). Admittedly, their report covers that the Director and Chairman of this borrower company took credit limits worth ₹310 crore approximately from them.
They allegedly took the loan sum and then diverted it to their accounts. Since SBI filed the report, the account has been declared as fraud and has become NPA. The total loss SBI reportedly suffered from this was approximately ₹313.79 crore. Moreover, CBI conducted searches at their Chennai bases.
At the moment, both of these cases are under ongoing investigation.