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FIR against Kamal Nath's sister, nephew in bank fraud case

The FIR has been registered on a complaint from Central Bank of India

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Ratul Puri
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The Central Bureau of Investigation (CBI) has registered an alleged cheating case against Madhya Pradesh Chief Minister Kamal Nath's nephew Ratul Puri, the then former executive director of Moser Baer, and others for defrauding Central Bank of India of Rs 354 crore.

The FIR has been registered on a complaint from Central Bank of India. Besides Ratul and the company, the agency has booked his father and Managing Director Deepak Puri, Directors Nita Puri, who is Ratul's mother and Kamal Nath's sister, Sanjay Jain and Vineet Sharma for alleged criminal conspiracy, cheating, forgery and corruption.

Ratul had resigned from the post of executive director in 2012, while his parents continue to be on the board, the bank said in a statement.

The agency has carried out searches at six locations including the residences and offices of the accused directors Sunday, they said.

The company is involved in the manufacture of optical storage media like compact discs, DVDs, solid state storage devices.

It was taking loans from various banks since 2009 and went for debt restructuring a number of times, the bank has alleged in the complaint which is now part of the CBI FIR.

When it was unable to pay the debt, a forensic audit was done and the the account was declared as "fraud" by the Central Bank of India on April 20, 2019, it has alleged.

"The MBIL has committed fraud and cheated the complainant bank thereby making a wrongful gain to themselves and a wrongful loss to the lender bank which is a custodian of public money," the complaint to the CBI said.

Primary security of the bank consisting of stock of finished goods, semi finished goods and raw material have also been dishonestly and fraudulently removed by the company and its directors in order to prevent the distribution amongst the creditor banks to satisfy the debt, the bank has alleged.

"The funds granted by the banks have been misused and misappropriated by MBIL and its directors for their own personal use, MBIL and its Directors and promoters have also committed fraud in respect of reporting book debts, which were also one of the primary securities of the bank," the FIR stated.

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