The CBI has booked Madhya Pradesh-based firm Narayan Niryat and its director, Kailash Chand Garg, for allegedly dishonest a UCO Bank-led consortium to the tune of over Rs 105 crore, officers stated on Monday.
The company has alleged that from 2011 to 2013, the corporate availed credit score amenities to the tune of over ₹110 crore from a consortium of banks consisting of UCO Bank, Corporation Bank (now merged with Union Bank of India) and Punjab National Bank, they stated.
The CBI has additionally named one other director of the corporate, Suresh Chand Garg (now deceased), as accused within the FIR.
To allegedly cheat the banks, Narayan Niryat and its administrators resorted to varied mala fide actions reminiscent of diversion of financial institution funds by its affiliate and sister considerations with out transacting any items, improper reporting in monetary statements and steadiness sheets, the officers stated.
“Further, the complainant bank (UCO Bank) has requested in the complaint for investigation of the role of unknown public servants in the above said fraud committed upon the banks,” the CBI FIR alleged.
The financial institution, in its criticism, has alleged that the administrators, after availing credit score amenities, defrauded the banks and willfully diverted the banks’ funds and put the banks to an enormous wrongful loss and corresponding wrongful acquire to themselves and misused the general public cash.
“We further inform you that the company has submitted a Compromise Proposal of ₹37 crore to all three consortium banks against the total outstanding ₹106.56 crore, which was sanctioned by our bank but due to non-compliance of terms and condition of the OTS by company, same has been failed,” UCO Bank has stated in its criticism to the CBI which is now part of the FIR.