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CBI CONDUCTS SEARCHES OF SHAKTI BHOG FOOD COMPANY ON DEFRAUDED BANKS TO THE TUNE OF 3270 CRORES

January 02, 2021 04:36 PM

K.K.Kumar
 New Delhi (Face2News)

The Central Bureau of Investigation (CBI) reportedly conducted Searches at eight  locations in Delhi at the official & residential premises of the borrower company Shakti Bhog Food Company /other accused, which led to recovery of incriminating documents,, defrauding the Banks to the tune of Rs. 3969.42 crores.

The Central Bureau of Investigation has registered a case on a complaint from State Bank of India against Delhi-based Shakti Bhog Foods Limited for an alleged fraud of Rs 3,269 crore on a consortium of 10 banks led by the State Bank of India, officials said on Friday.

  On a complaint from the SBI, the agency has booked the managing director of the company, Kewal Krishan Kumar, and other directors Siddhrath Kumar and Sunanda Kumar, they added. The account turned an NPA on account of inventory losses owing to a steep fall in paddy prices, underutilisation of capital expenditure in the rice and paddy segments and a delay in the tie-up funds to tide over losses, an investigation report by the bank on staff accountability had noted in 2017.

On a complaint from the SBI, the agency has booked the managing director of the company, Kewal Krishan Kumar, and other directors Siddhrath Kumar and Sunanda Kumar, they added. The account turned an NPA on account of inventory losses owing to a steep fall in paddy prices, underutilisation of capital expenditure in the rice and paddy segments and a delay in the tie-up funds to tide over losses, an investigation report by the bank on staff accountability had noted in 2017.

 

 It was alleged in the complaint that the said accused had cheated the State Bank of India led consortium banks by ways of criminal conspiracy, cheating, forgery of valuable security, forgery for the purpose of cheating, using forged documents as genuine etc.     

The forensic audit done by the bankers pointed out that the company, in its account books of financial year 2015-16, showed that its inventory worth over Rs 3,000 crore got damaged due to pests and was sold at substantially low prices. This was contradictory to the stock and receivable audit report, which showed that the company had a stock of over Rs 3,500 crore in September 2015, its warehouses were fully stocked and none of the inventory was obsolete or slow moving, the bank alleged in its complaint.

The report also said the company had an insurance policy for protection against fire, earthquake and other perils but no claims were made about stock getting damaged because of pests. The accounts also did not show any receivables owing to a sale of damaged stocks at low prices, it said. The report also pointed out round-tripping of funds and suspicious payments made by the company, besides besides fudging of account books, the officials said.

 
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