CBI chargesheet against firm for cheating these three Banks.

The Central Bureau of Investigation (CBI) has filed three chargesheets in the additional chief metropolitan magistrate court against the then chairman and managing director of a private leasing company and others for hatching a criminal conspiracy and cheating three banks to the tune of ₹665 crore.

The agency charged that the directors/promoters/managing director and key officials of FLCIL in furtherance of a criminal conspiracy with the statutory and internal auditors of the company and unknown others with mala fide intentions to cheat IDBI bank had availed themselves of credit facilities on the basis of forged financial reports and siphoned away the money, causing a loss of ₹273.99 crore approximately to the bank.

The accused also availed themselves of credit facilities from UCO Bank in the form of working capital limit and short-term loans in the name of a private leasing company based in Chennai by furnishing fabricated financial statements and siphoned away the money, resulting in a loss of approximately ₹142.94 crore to the bank. They also cheated the State Bank of India in the name of the company by furnishing inflated income and assets in the financial statements by creating unsubstantiated entries in the books of accounts since 1998, causing a loss of ₹248.46 crore to the bank.

The investigation brought to light that the promoter-directors had misappropriated the assets of the company entrusted to them by using the loaned money to donate annually to a Trust run by the main accused.

The offences are punishable under Sections 120-B(Criminal Conspiracy) of the Indian Penal Code, read with Sections 201 (causing disappearance of evidence) 409 (Criminal Breach of Trust), 420 (Cheating), 468 (Forgery), and 477-A (Falsification of accounts) of the IPC.

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