CBI arrests two for Rs 24 cr bank fraud

Tribune News Service

New Delhi, May 11

The CBI has arrested Sumit Singla, director of a Delhi-based private company M/s Raksha Global Steel Private Limited, and another person Vikas Singla in a case related to alleged fraud of Rs 24.64 crore, approximately, in Canara Bank.

They were produced before the Chief Metropolitan Magistrate (CMM), Patiala House Courts, and granted six days police custody, said the spokesperson for the CBI.

The bank fraud case was registered against the private steel company and its two directors, unknown public servants and other unknown private persons, he said.

The CBI alleged that the company through its director had obtained limits for OCC/ODBD of Rs 10 crore and ILC/FLC of Rs 10 crore from Canara Bank, Connaught Circus, New Delhi. It was also alleged that these limits were fraudulently secured by hypothecation of stocks and book debts of the company and fraudulently collaterally secured by the equitable mortgage of the two properties which were not in possession of the accused at the time of sanction of the loan.

The CBI further alleged that 23 inland letters of credit were fraudulently opened by the company during the period of March 2013 to December 2013 in Canara Bank in favour of eight beneficiaries which were devolved on the bank. The funds of the alleged LCs were diverted by the accused. Funds from the cash credit account and ILC/FLC were also allegedly siphoned off to the sister concerns of the company and were further utilized by the accused for the purposes other than for which the loan was sanctioned.

An alleged loss to the tune of Rs.24.64 crore was caused to bank.