Over Rs 8000 Crore Fraud; CBI Registers Cases Filed By Canara Bank And State Bank Of India

• CBI has registered two separate cases related to bank fraud to the tune of around Rs 8,200 crore.
• It was alleged that the Hyderbad-based private firm and its executives had availed credit facilities on multiple banking arrangements.

The Central Bureau of Investigation (CBI) has registered two separate cases, which were filed by Canara Bank and State Bank of India related to the fraud of around Rs 8,200 crore.

The complaint was filed by Canara Bank related to the fraud amounted to around Rs Rs. 7926.01 crore; while State Bank of India has filed a complaint of around Rs 313.79 crore, respectively.

The fraud case has been registered against the Hyderabad-based private firm, including the firm CMD, additional Directors, public servants, and others on a complaint from Canara Bank.

It was alleged that the Hyderabad-based out firm and their executives had availed credit facilities from banks on multiple arrangements. The consortium was formed with the other financial institutions, which was led by Canara Bank.

Further, It was alleged that the accused had involved in falsification of books of accounts, fudging of stock statements, tampering of balance sheets, etc.

While it was also alleged that the accused misappropriated the bank's funds and diverted the loan amount sanctioned by the banks, causing a loss of around Rs. 7926.01 crore to Canara Bank and other financial institutions. TimesNow first reported.

Also Read: PNB Reported Rs 1,203 Crore Fraud By Sintex Industries

The missing amount had become NPA (Non-Performing Asset) in the bank's record.

Meanwhile, The investigation was conducted by the CBI at the properties of the company as well as other accused at Hyderabad and Guntur, which led to a recovery of incriminating documents.

The second case has been registered against a Chennai-based private firm, including its Chairman, Director, public Servants, etc., on a complaint from State Bank of India (SBI). 

SBI alleged that the company has falsely availed the credit facility limits of around Rs 310 crore from the bank. The Central Bureau of Investigation (CBI) is currently investigating the premises of the accused in Chennai.

Earlier in October 2020, Punjab National Bank reported Rs 1,203 crore borrowed fraud by Kalol-based Sintex Industries.

According to the RBI annual report, Over Rs 1.85 lakh crore of bank fraud was reported in the financial year ended June 2020, more than a 50% increase compared with over around Rs 71,500 crore in the previous fiscal year.

More than 80% of bank frauds are reported by the public sector banks such as Canara Bank, Punjab National Bank, State Bank Of India, etc.

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