CBI books Tiruchy private firm for defrauding bank

CHENNAI: The anti-corruption branch of CBI, Madurai has booked a Tiruchy-based private firm named S Kumar Engineering Industries and its partners on the charges of cheating a Canara bank branch to the tune of Rs 22.08 crore.

CBI has slapped firm's managing partner P Senthil Kumar and partner P Saravana Kumar, from Tiruchy, under IPC provisions for forgery, cheating, criminal conspiracy and criminal breach of trust.

The firm was dealing in fabrication of boiler components for BHEL, Tiruchy. After the loan accounts of the firm were declared non-performing, an internal investigation was carried out by the bank.

It revealed that the company sold the machinery worth Rs 9.38 crore though the same had been hypothecated to the bank to clear its other borrowings and submitted forged bills as if components were sold to BHEL. Inquiry with BHEL revealed that eight bills worth over Rs 8 crore were fake for which the company availed discounting and that BHEL debarred the firm not to execute their orders. The bank also unearthed discrepancies in collateral declaration.