The textile major had availed various credit facilities from Union Bank of India, which turned into non-performing assets in 2013, and declared fraud in 2020
Central Bureau of Investigation (CBI) has filed a FIR over alleged bank fraud by textile major S Kumars Nationwide, wherein the accused duped Union Bank of India of over ₹160 crore.
The investigative agency filed the case based on a complaint from the lender alleging that the company and its promoters and directors, including managing director Nitin Kasliwal, and directors Vijay Goverdhandas Kalantri, Anil Kumar Channa, Rajinder Krishan Garg and Jagadeesh Sanjeeva Reddy, indulged in fraudulent transactions, causing a loss to the bank, reported news agency PTI.
"The said borrower company and its directors caused wrongful loss of ₹160.68 crores to the said bank and wrongful gain to themselves during the period 2013-2018," the CBI FIR alleged.
It said the directors accused in the case colluded and conspired with one another and unidentified officials to defraud the bank by “taking recourse" to commission of various cognisable and non-cognisable offences.
The textile major had availed various credit facilities from Union Bank of India, which turned into non-performing assets (NPAs) in 2013. The account was later declared “fraud" in 2020 after a forensic audit by the KPMG.
The forensic audit also red-flagged transactions with two potentially linked customers and over three-fourth of transactions with non-operating entities, the PTI report said.
The lender in its complaint to the CBI, now a part of the FIR, has alleged that the S Kumars Nationwide defrauded it by directing 94 per cent sales to selective distributors, writing off receivables from customers and entering into "doubtful" resale transactions to the same customer at heavily discounted prices.
The bank has also alleged that auditors of the company had investments in the company.