Home » CBI Registers a Case Against a Private Firm for Defrauding Union Bank of Rs 46.79 crore

CBI Registers a Case Against a Private Firm for Defrauding Union Bank of Rs 46.79 crore

by Raju Vernekar
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By Raju Vernekar
Mumbai, Aug 8:

The Central Bureau of Investigation (CBI) has lodged an FIR against the Ahmedabad-based firm for causing loss of Rs.46.79 crore to Union Bank of India, by indulging in dishonest means, including issuance of bogus invoices and diversion of funds.
The FIR (RCO292023A0014 dated August 03) under sections 429, 120-B of the Indian Penal Code and sections 13(2) and 12 (1) (D) of the Prevention of Corruption Act 1988 has been registered against-Greendiamz Biotech Private Limited and its directors-Champat Rikhabchand Sanghavi, Deepak Champat Sanghavi and Ashwin R Shah, based on a complaint lodged by Lokesh Sharan, Assistant General Manager of the Union Bank(  Stressed Assets Management branch(.
It was alleged that the accused had diverted/siphoned off funds through falsification of information/documents and thus committed the offence of criminal breach of trust, cheating, misappropriation of public fund in connivance with one another.
Searches were conducted at different locations in Ahmedabad at the premises of the accused, including borrower company which led to recovery of incriminating documents, the CBI statement read.
Initially the accused formed a company on May 08, 2009 with title “ True Green” with authorised share capital of Rs 50 lakh, to manufacture the bio-degradable plastic products at Bavla in Gujarat. It was converted into public limited company on January 18, 2011.
The company imported plastic granules from M/s Limagrain Cereal ingredients, Germany and machinery from Taiwan in 2009. It marketed its products as “Biolice”, claiming it to be 100 % biodegradable and 100 % compostable.
The company initially obtained a letter of credit for Rs 725 lakh, a term loan of Rs 1285 lakh and also availed of other facilities from the Union Bank. Although the company claimed to commence production on September 30,2009, the commercial production began only in January 2011. But the production was irregular. Eventually due to insufficient turn over in its account, it was classified as Non-Performing Asset on December 31, 2013. In the meanwhile the Union Bank’s dues swelled up to Rs 46.79 crore.

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