Bank FD scam gets bigger, 9 FIRs filed
Total scam in collusion with middlemen is estimated at over Rs 700 cr. Probe is on in 10 more cases
The fixed-deposit (FD) fraud at banks is getting bigger. The economic offences wing (EOW) of the Mumbai Police on Thursday said it had filed nine first information reports against several bank officials for colluding with outsiders in committing FD frauds of at least Rs 700 crore. Preliminary inquiry is currently on in another 10 cases.
The EOW was cooperating with the Central Bureau of Investigation in the case, as some of the accused were the same as those who perpetrated the Dena Bank and Oriental Bank of Commerce frauds, EOW officials said. Apart from those two banks, officials from Vijaya Bank, UCO Bank, Bank of India and Dhanlaxmi Bank were under scrutiny for alleged involvement, EOW said.
The total amount involved was estimated to be at least Rs 700 crore, said Rajvardhan Sinha, assistant commissioner police, EOW. The amount could get bigger, with police expecting more customers to come forward and register complaints.
This includes the Rs 436 crore misappropriation of funds (Rs 180 crore in OBC and Rs 256 crore in Dena) unearthed last week.
Besides a probe by the Central Bureau of Investigation, the government has also ordered a forensic audit.
The perpetrators of the fraud misused the cash credit facilities available against FDs of entities like the Mumbai Metropolitan Regional Development Authority, South Indian Education Society and the Jawaharlal Nehru Port Trust. So far, four people have been arrested while six others are under the scanner. The mastermind of the scam is reported to be Mohammed Fasihuddin of Showman Group.
A Bank of India executive said the amount in its case was less than Rs 7 crore. Internally, the bank has already taken action against the employee concerned and also tightened monitoring of business related to big-ticket fixed deposits.
A Vijaya Bank executive said the amount involved in its case was about Rs 5 crore. The bank has completed its investigation in the matter.
Elaborating on the modus operandi, police said the accused approached the trusts and individuals to open FDs with public-sector banks using middlemen. In return, these entities were given a slightly higher rate of interest. Once the FD was opened, the accused gave fake receipts to the entities and used the original ones to open accounts with forged documents. They then transferred the overdraft amount to their accounts using the real-time gross settlement system facility.
The EOW was cooperating with the Central Bureau of Investigation in the case, as some of the accused were the same as those who perpetrated the Dena Bank and Oriental Bank of Commerce frauds, EOW officials said. Apart from those two banks, officials from Vijaya Bank, UCO Bank, Bank of India and Dhanlaxmi Bank were under scrutiny for alleged involvement, EOW said.
The total amount involved was estimated to be at least Rs 700 crore, said Rajvardhan Sinha, assistant commissioner police, EOW. The amount could get bigger, with police expecting more customers to come forward and register complaints.
This includes the Rs 436 crore misappropriation of funds (Rs 180 crore in OBC and Rs 256 crore in Dena) unearthed last week.
Besides a probe by the Central Bureau of Investigation, the government has also ordered a forensic audit.
The perpetrators of the fraud misused the cash credit facilities available against FDs of entities like the Mumbai Metropolitan Regional Development Authority, South Indian Education Society and the Jawaharlal Nehru Port Trust. So far, four people have been arrested while six others are under the scanner. The mastermind of the scam is reported to be Mohammed Fasihuddin of Showman Group.
A Bank of India executive said the amount in its case was less than Rs 7 crore. Internally, the bank has already taken action against the employee concerned and also tightened monitoring of business related to big-ticket fixed deposits.
A Vijaya Bank executive said the amount involved in its case was about Rs 5 crore. The bank has completed its investigation in the matter.
Elaborating on the modus operandi, police said the accused approached the trusts and individuals to open FDs with public-sector banks using middlemen. In return, these entities were given a slightly higher rate of interest. Once the FD was opened, the accused gave fake receipts to the entities and used the original ones to open accounts with forged documents. They then transferred the overdraft amount to their accounts using the real-time gross settlement system facility.
Syndicate Bank fraud case: ED attaches Rs 12 crore assets-FE
The properties had been purchased by one Kumar alias Vijayakumar by obtaining several loans, including housing and personal, from the Syndicate Bank using forged documents in the names of his friends and relatives, an official release said on Saturday.
In May 2013, several officials of Syndicate Bank, (Housing finance) Mylaore Branch, alongwith Kumar, a resident of Tiruvottiyur, were chargesheeted in the fraud case by the CBI's anti-corruption branch. The release said that some bank officials allegedly sanctioned loans on the basis of such fabricated documents to the tune of Rs 6 crore following a criminal conspiracy.
All the accused were booked under several sections of the IPC and the Prevention of Corruption Act. The case was subsequently taken up by the ED for scrutiny under the Prevention of Money Laundering Act. The ED probe corroborated that Kumar had obtained several loans including housing and personal under forged documents in the names of his friends and relatives. The money got through loans were used for purchasing and developing eight properties.
Kumar had been getting rental and lease income from them. He did not, however, repay the loans. "As the immovable properties are proceeds of crime under Prevention of Money Laundering Act, the ED has attached them and further probe is on," the release added.
SBI officer, 13 others get jail in bank fraud case
CHENNAI: A court in Chennai on Tuesday sentenced a bank officer, a village administrative officer and 12 others, including six women, to jail terms in a bank fraud case.
In 2003, the Anti-Corruption Branch of the CBI registered a case against Prabhu Dawson, assistant manager at the Thirukazhukundram branch of State Bank of India and others.
Two years later, a chargesheet was filed against Dawson, four village administrative officers and 24 others under various sections of the IPC and the Prevention of Corruption Act, 1988.
The prosecution said Dawson had abused his official position and entered into a criminal conspiracy with others. He then facilitated private individuals to avail crop loans on the basis of fake property documents and caused a wrongful loss of Rs 33,37,619 to the bank.
On completion of the trial, XI additional special judge S Sengottaiyan convicted 14 people. Dawson was sentenced to two years RI. The judge imposed a fine of Rs 20,000 on him.
L Velu , village administrative officer, Mamallapuram, was sentenced to six months RI and a fine of Rs1,000 was imposed on him. Six private loanees were sentenced to six months RI. They have to pay a fine of Rs 2,000 each. Another six private loanees were sentenced to six months RI and a fine of Rs 1,000 was imposed on each of them.
In 2003, the Anti-Corruption Branch of the CBI registered a case against Prabhu Dawson, assistant manager at the Thirukazhukundram branch of State Bank of India and others.
Two years later, a chargesheet was filed against Dawson, four village administrative officers and 24 others under various sections of the IPC and the Prevention of Corruption Act, 1988.
The prosecution said Dawson had abused his official position and entered into a criminal conspiracy with others. He then facilitated private individuals to avail crop loans on the basis of fake property documents and caused a wrongful loss of Rs 33,37,619 to the bank.
On completion of the trial, XI additional special judge S Sengottaiyan convicted 14 people. Dawson was sentenced to two years RI. The judge imposed a fine of Rs 20,000 on him.
L Velu , village administrative officer, Mamallapuram, was sentenced to six months RI and a fine of Rs1,000 was imposed on him. Six private loanees were sentenced to six months RI. They have to pay a fine of Rs 2,000 each. Another six private loanees were sentenced to six months RI and a fine of Rs 1,000 was imposed on each of them.
CBI seizes passport of accused in bank fraud case
The special court of Central Bureau of Investigation (CBI) on Wednesday seized the passport of Suhail Goyal after a case was registered against his father Rajiv Goyal’s Surya Pharmaceuticals Limited (SPL) and unknown bank officials. The FIR was registered by CBI on June 3, following a complaint of alleged cheating with the State Bank of India. The complaint was given by the Special Commercial Branch of Chandigarh to CBI office in Delhi alleging that the accused had duped the bank to the tune of Rs 157.96 crore. Residence and offices of the directors of the company were searched by teams of Delhi CBI in June 20.
An investigating officers said that they have seized documents during the raid which clearly depict the fraud. Suhail Goyal’s passports was seized to ensure his presence in the country. He was the additional director General of M/s Emsons Organics limited, one of the companies accused in the case, during the relevant period when the fraud was committed. FIR has been registered against all the directors of SPL and names of Rajiv Goyal and his wife Alka Goyal are also mentioned.
Along with them, Hari Om Bhatia, the chief finance officer; Mukta Seth, manager; Pramod Allagrwal, director (operations) of Kobian Private Limited based in Dubai and “other private and public persons” have also been mentioned for “causing wrongful loss”. The accused have been booked under Section 120-B with 420, 467, 468 and 471 of the IPC and relevant Sections of the Prevention of Corruption Act. As per the complaint received by CBI on May 22, 2014, Kumar Sharadindu, the General Manager of SBI, Mid Corporate Group, Panchkula Sector 5 branch said that SPL availed the working capital facilities of Rs 1,100 crore. SBI’s share was Rs 405 crore.
The fraud has been committed from 2010 to 2012. “During the course of availing financial facilities pertaining to Indian LC and Foreign LC from the bank, the accused persons in charge of the SPL in connivance with each other and other unknown persons indulged in criminal activity to cheat the banks by fabricating the purchases and sales of the same products with one concern, viz Emsons Organics Private Limited without addition of any processing value, wrongly showing purchases of pharmaceutical products form concerns dealing in the information technology, telecommunication, electric and electronic products totally unconnected to the business of SPL indulging in trading activities while falsely showing such activities as genuine sales transactions as also committing serious financial and other business irregularities to cheat the lending banks and to misappropriate their funds”, reads a copy of the FIR with the Indian Express. An investigative audit was carried out by SBI in October 2013 which revealed that the bank was cheated of Rs 157.96 crores. After the FIR was registered, CBI had sought search warrants to recover documents and materials mentioned in the FIR. - See more at: http://indianexpress.com/article/cities/chandigarh/cbi-seizes-passport-of-accused-in-bank-fraud-case.
No comments:
Post a Comment