Mumbai: CBI files case against private firm for Rs 274 crore fraud

Central Bureau of Investigation (CBI) has registered a case of cheating against a Mumbai-based private company for allegedly duping Bank of Baroda (BoB) to the tune of Rs 274 crore.

According to the CBI officials, a written complaint was received last month from SK Sharma, deputy general manager from BoB, alleging that M/s PSL Ltd, its directors and other accused persons, during the period of 2011 to 2016 were party to a criminal conspiracy to cheat BoB. "In pursuance to the said criminal conspiracy, the directors of M/s PSL Ltd, induced BoB to sanction Demand Loan of Rs 300 crore and disburse the loan proceeds for execution of specific orders from Gas Authority of India Ltd (GAIL) ," said a CBI official.

He added, the bank further alleged that as per the terms of sanction, the company was to route its receivables from GAIL order through ESCROW account maintained with BoB, which would be subsequently used for clearing bank's dues.

"However, the funds received by the company from GAIL were deliberately not routed through ESCROW account maintained in BoB, but syphoned off through an account of the company in a private bank in Mumbai, the BoB has alleged in their complaint," the officer said.

"The company had admitted that they had received money from GAIL in their private bank accounts which had been spent for the purposes other than it was sanctioned, thereby the BoB has suffered a huge loss to the tune of Rs 274 crore. The account of M/s PSL Ltd was declared fraud in January 2016 by BoB," the CBI official said.

The agency claimed that some chartered accountants and officials from the private bank and BoB too were involved in the said conspiracy.

Bank Of Baroda