Bank fraud: CBI books logistics firm

The CBI registered a case of criminal conspiracy, cheating and forgery besides the provisions under the Prevention of Corruption Act against Sarath Logistics Pvt Ltd based on a complaint from J Ram Satyanarayana, Chief Regional Manager, IOB, Regional Office-1, Chennai. The accused are N Nagarajan, Khushal J Shah, N Balu, N Vijayalakshmi, B Umumahewari and Indumati K Shah, directors of Sarath Logistics Pvt Ltd. 

The CBI FIR said the accused, with a criminal intention to cheat the bank, conspired with unknown public servants and others and fraudulently got a cash credit limit of Rs 11 crore sanctioned in 2013 for the takeover of credit of Rs 11 crore from Kotak Mahindra Bank to the company. The accused inflated book debts of Saint Gobain Indian Pvt Ltd to the tune of Rs 5.89 crore from February 2014 to August 2014 and submitted fake, forged, fabricated stock statements and inflated sales figures for 2013-14 fiscal. The account was declared NPA in 2014 and the outstanding was pegged at Rs 3.75 crore as of end-2020.