CBI conducts searches in Rs 34,615 cr multi-bank scam

New Delhi [India], July 28 (ANI): The Central Bureau of Investigation (CBI) on Thursday said it conducted further searches in an ongoing investigation of a case related to the alleged loss of Rs 34,615 crore (approx) to a consortium of 17 banks led by Union Bank of India.
According to CBI, two paintings made by FN Souza (1964) and another by SH Raza (1956) worth Rs 5.50 crore (approx); two Swiss watches worth Rs 5 crore (approx) and gold and diamond jewellery worth Rs 2 crore (approx) have been recovered. It was also alleged that the promoters had acquired expensive items using the diverted funds.
A case was registered on June 20 on a complaint from Union Bank of India, Industrial Finance Branch, Mumbai against a private (Borrower) company based at Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servants) and private persons on the allegations that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of Rs 34,615 crore (approx) by siphoning off loans availed from the said banks and falsifying the books of said private (Borrower) company and creating Shell Companies/false entities, which had come to be known as "Bandra Book Entities".
During the investigation, the then CMD and Director, both of private company based at Mumbai were arrested and both are presently in CBI custody.
It was alleged that the said private company and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities.
It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage and conceal dubious transactions. The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the said private (Borrower) company.
Earlier, searches were conducted at various locations in Mumbai at the premises of the accused which led to the recovery of incriminating documents.

Further investigation is underway. (ANI)