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CBI Registers Bank Fraud Case of Over Rs 200 Crore Against Steel Hypermart India Pvt Ltd

File photograph of the CBI headquarters in New Delhi. (PTI)

The company on Wednesday carried out searches in Bangalore and Shoolagiri, Krishnagiri district of Tamil Nadu on the premises of the corporate and accused individuals, CBI spokesperson RC Joshi stated.

  • PTI New Delhi
  • Last Updated: January 13, 2021, 20:17 IST
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The CBI has registered a financial institution fraud case of over Rs 200 crore towards Bengaluru-based Steel Hypermart India Private Limited and its administrators for losses incurred by a consortium of banks led by the Indian Bank, officers stated Wednesday. The company on Wednesday carried out searches in Bangalore and Shoolagiri, Krishnagiri district of Tamil Nadu on the premises of the corporate and accused individuals, CBI spokesperson RC Joshi stated.

Besides the corporate, the CBI has named its administrators Mahendra Kumar Singhi and Suman Mahendra Kumar Singhi, and chartered accountant Mukesh Surana in its FIR registered based mostly on a grievance from the Indian Bank, the officers stated. The financial institution, in its grievance, alleged that the corporate had availed credit score services from the consortium of e-Vijaya Bank and Indian Bank between 2017 and 2019.

The account was declared a non-performing asset in April 2019 and subsequently tagged as fraud in November that yr, Joshi stated. The fraud resulted within the lack of Rs 168.39 crores to Indian Bank and Rs 31.99 crore to e-Vijaya Bank (now Bank of Baroda).

“It was further alleged that the borrower company in order to avail higher working capital limits from the banks, had inflated its turnover, made purchase transactions with the related/sister concerns, inflation of receivables, diversion of fund within the related/sister concerns, submitted false/fudged accounts/statements, etc. and siphoned off the banks funds, thereby causing loss to the said banks,” Joshi stated.

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