CBI registers case against Mandhana Industries; There is an allegation of bank fraud of Rs 975 crore
CBI has taken this action after a complaint by the bank. In this, the bank alleged that the company's former managing director Purushottam Chhaganlal Mandhana, former executive director Manish Biharilal Mandhana, and some others defrauded the consortium by hatching a well-organized criminal conspiracy to raise funds.
The Central Bureau of Investigation (CBI) has registered an FIR against Mandhana Industries. This Mumbai-based company is accused of alleged fraud of Rs 975.08 crore with a Bank of Baroda-led consortium. A CBI officer gave information about this. He said that currently, the name of this company is GB Global Limited.
According to Amar Ujala, the CBI has taken this action after a complaint by the bank. In this, the bank alleged that the company's former managing director Purushottam Chhaganlal Mandhana, former executive director Manish Biharilal Mandhana, and some others defrauded the consortium by hatching a well-organized criminal conspiracy to raise funds.
It said the 39-year-old company, run by the Mandhana family, started availing credit facilities from Bank of Baroda in 2008. The bank declared his loan account as a non-performing asset (NPA) on December 31, 2016. The banks later ordered a forensic audit. This audit revealed that the company had misused funds to settle inter-corporate loans.
Also, several other irregularities including non-utilization of Trust and Retention Account (TRA) and fraudulent purchases amounting to Rs 420.39 crore from July 2016 to September 30, 2017, were revealed. Apart from this, fraudulent transactions circular trading, and diversion of funds were also detected in the audit.
