The CBI’s bank security and fraud cell has booked a case against the Hyderabad-based Mussadilal Jewellers Exporters Private Limited for allegedly cheating the Indian Overseas Bank to the tune of Rs 75.01 crore.
The Bengaluru-based cell booked a case under Sections 120B (punishment for criminal conspiracy) read with 406 (punishment for criminal breach of trust), 420, (cheating) 468 (forgery) and 471 (using forged document as genuine) of the Indian Penal Code and Section 13(2) read with 13(1)(d) of the Prevention of Corrup-tion Act against Mussadilal’s guarantors and directors Mohan Lal Gupta and Prashant Gupta.
In the FIR, the CBI detailed how the alleged fraud came to be perpetrated. It said the company was sanctioned Rs 50 crore in 2009 for taking over the fund-based facilities of Rs 55.80 crore from ING Vysya Bank but it was not availed. Subsequently, the company requested a reduction of the limit, which the IOB regional office in Hyderabad brought down to Rs 40 crore.
In 2011, Mussadilal Jewellers Exporters requested Rs 55 crore from IOB for the takeover of the fund from ING Vysya Bank. This was also sanctioned. Mussadilal Jewellers Exporters reported there were some operational difficulties and the account was restructured and ratified. It was reported that the company had complied with all the terms and conditions and operated the account within the limit. The turnover in the account was also satisfactory till March, 2013. Thereafter, various additional limits — working capital term loan (WCTL) and funded interest term loan (FITL) were sanctioned to the company, which availed the overall credit limits of Rs 82.37 crore.
After availing these credit limits, the company failed to repay installments and service interest. As result, the account has slipped to NPA on March 31, 2014, due to non-servicing of interest and installments of FITL and WCTL. The bank allowed holding on operations in the account in February 2013 for availing gold loan with 10 per cent margin which was reduced to five per cent in May 2013.
Even after hand holding, the company with an intention to defraud, stopped transactions with the bank and the account became a non-performing asset, the FIR said. Based on a complaint lodged by IOB chief regional manager N. Ravichandran, the CBI booked the case against the company.