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ED ARRESTED RAMAN BHURARIA CA IN 3269 CRORE BANK FRAUD CASE OF SHAKTI BHOG FOODS, REMANDED TO CUSTODY TILL AUG 20

August 16, 2021 09:03 AM

New Delhi (Face2News)

Enforcement Directorate (ED) reported to have arrested Raman Bhuraria, CA in Rs.3269 Crore bank fraud case of M/s Shakti Bhog Foods Limited and sent to custody till August 20.

ED arrested the accused in an outgoing investigation of the Fraud Case and was arrested on August 13 and profuced before the Ilaqa Magistrate, who granted custody to ED till August. 20.  The CA was arrested after his anticipatory bail was rejected by a local court in Delhi. 

Besides arresting him, the ED also conducted searches at various locations linked to Raman and seized some documents and digital evidence. 

The ED had initiated a money-laundering investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against Shakti Bhog Foods Limited and others, for criminal conspiracy, cheating and criminal misconduct.

It may be recalled that on in January this year  CBI had 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, in January this year.

K.K.Kumar MD Shakti Bhog
CBI had also 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 may be recalled that on in January this year CBI had 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, in January this year.CBI had also 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.

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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