CBI registered a case over an alleged $10 million fraud involving India Exim Bank.
The FIR names a dissolved UK firm, its former directors, guarantors and two Indian companies.
The bank alleged that loan funds meant for a UK recycling project were diverted, causing a loss of around ₹63 crore.
UK Firm, Ex-Directors Named In CBI Case Over Alleged $10 Mn India Exim Bank Fraud
The alleged fraud involves a $10 million loan sanctioned in 2012 for a UK recycling project, with the bank claiming that the funds were diverted and the machinery was never supplied
Summary
The Central Bureau of Investigation (CBI) has registered a case over an alleged USD 10 million fraud involving India Exim Bank, a UK-based company and its former directors and associates, officials told PTI.
The case follows a complaint filed by G Selva Kumar, assistant general manager at India Exim Bank. The bank alleged that it suffered a loss of $10 million, approximately ₹63 crore, which remained outstanding when the loan account was declared a non-performing asset (NPA) in September 2014.
FIR Names UK Firm, Former Directors
The First Information Report (FIR) names Hanjer Biotech (Erith) Ltd, a UK-based company that has since been dissolved, along with its former directors and guarantors.
Navi Infrastructure Engineering Pvt Ltd, Hume Synthesis Pvt Ltd and unidentified public servants have also been named as accused in the case.
$10 Million Loan For UK Recycling Project
According to the complaint, which forms part of the FIR, Hanjer Biotech had entered into an agreement with Navi Infrastructure for the supply of machinery for a recycling project in the UK.
The borrower company subsequently approached India Exim Bank for financial assistance. The project cost was estimated at $15.90 million, of which $5.90 million was proposed to be contributed by the promoters, while the remaining $10 million was to be funded through a loan from the bank.
The bank's executive committee in Mumbai approved a $10 million term loan in 2012, the FIR stated.
Machinery Not Supplied, Loan Allegedly Diverted
The complaint alleged that the machinery intended for the recycling project was never supplied. Instead, the advances received for its purchase were allegedly diverted as loans to related parties, including Hume Synthesis.
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The entire $10 million loan was allegedly siphoned off, PTI reported, citing the FIR.
Loan Account Classified As NPA
The loan account was declared a non-performing asset in September 2014 after the outstanding amount remained unpaid. It was subsequently classified as fraud under the Reserve Bank of India's guidelines.
The CBI has registered the case following the bank's complaint over the alleged diversion of funds and the resulting financial loss.
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