CBI Files Case Against Delhi Based Firm For Rs 1800 Crore Fraud

A forensic audit by Ernst and Young showed alleged diversion and siphoning off of bank funds, fictitious transactions, forgery, resulting in the FIR, according to CBI.

(File Photo/ Getty)

India’s premier investigation agency, the Central Bureau of Investigation (CBI), searched at three locations in Delhi connected with an alleged Rs 1,800-crore fraud at India’s largest lender State Bank of India (SBI).

CBI had earlier booked Jay Polychem Ltd. in connection with the alleged fraud. The agency had received a complaint from SBI against the Delhi-based company and its promoters and directors for causing Rs 1,800.72 loss to a consortium led by the bank.

A forensic audit by Ernst and Young showed alleged diversion and siphoning off of bank funds, fictitious transactions, forgery, resulting in the FIR, according to CBI.

“CBI has registered a case on a complaint from SBI against a private company (borrower company) based at Lajpat Nagar, New Delhi and others including its Director, Guarantor, unknown public servants & unknown private persons on the allegations of causing an alleged loss of Rs. 1800.72 crore (approx) to SBI and other consortium banks,” said the investigation agency in a statement.

It was alleged that the accused had cheated the SBI led consortium banks to the tune of Rs. 1800.72 crore by diversion / siphoning off bank funds, fictitious transactions, cheating, forgery, criminal conspiracy. An SBI official could not be immediately reached for his comments.