Bank of Maharashtra goes to CBI with Rs 9.5cr loan fraud

Mumbai: The Bank of Maharashtra has approached the Central Bureau of Investigation (CBI) over an alleged forgery of Rs 9.5 crore by a Delhi-based businessman. In its complaint, the bank alleged that the Ashirwad chain co-proprietor, Amit Singla submitted bogus documents and failed to repay a loan of Rs 9.5 crore. 

In the FIR, the bank alleged that in October 2010, they had sanctioned a cash credit of Rs 350 lakh, which was later enhanced to Rs 550 lakh in September 2011, and further to Rs 950 lakh in August 2012. 

The bank’s allegations also said that the accused persons, in criminal conspiracy, had dishonestly induced the bank for getting a loan by forging the documents and then criminally misappropriated the said loan amount. 

Singla had put three properties as collateral which were valued at over Rs 18 crore by Tech Mach International at the time of taking the loan, but the actual market value of the properties were found to be only Rs 2.5 crore after the loan turned into a non-performing asset (NPA).

The complainant had in a letter dated December 24, 2014, informed all the accused that the Cash Credit (CC) Account was classified as a Non Performing Asset 

(NPA) in accordance with the guidelines of the Reserve Bank of India (RBI). 

The bank said the accused had submitted the inflated stock audit report and inflated balance sheet to avail the loan, adding that they diverted funds of the bank against the terms and conditions of the sanction, thus causing “wrongful loss to the bank and wrongful gain to themselves.” 

The bank alleged that Singla had failed to maintain financial discipline and defaulted in properly maintaining the said CC account in addition to various other breaches and violations of the sanction of the said CC facility. Consequently, a huge outstanding became due and payable to the bank, it said.