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Firm under CBI scanner in fraud case

The bank has filed its complaint against Byculla based M/s Navrang Gifts Private Ltd (NGPL) company and it's two directors among others

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The Economic Offences Wing of the Central Bureau of Investigation (CBI) is probing a case wherein an Andheri-based company is alleged to have duped a government bank to the tune of Rs 14.25 crore.

According to CBI sources, on November 27, a complaint was filed with CBI by Deputy General Manager of Bank of Baroda at Jogeshwari (W). The bank has filed its complaint against Byculla based M/s Navrang Gifts Private Ltd (NGPL) company and it's two directors among others.

A case has been registered on charges of criminal conspiracy, cheating and dishonest fabrication of documents for purpose of cheating and using them as genuine and dishonestly suppressing material information from the borrower bank.

In its complaint, the bank had alleged that Byculla based M/s Navrang Gifts Private Ltd (NGPL) company had approached the bank for term loan and working capital credit facilities in March 2014. In all, credit facilities aggregating Rs 14.25 crore were sanctioned and was later released by the bank to the company.

From the disbursement of the term loan, the company purchased the machinery as per bill/invoice submitted by the borrower. The company's factory caught fire in October 2014. On the account of the fire in the factory premises, most of the machinery and stock got damaged and the unit was closed.

"The company then sought for a claim in December 2014 after which the insurance company carried out a three-month survey and inspected the machinery, stock documents etc. The said insurance claim was declined by the insurance company in April 2015," said a CBI source.

He added, as per the insurance company, most of the invoices related to purchase of machinery and stock were allegedly found to be fake/forged and some parties were not even in existence.

"The bank alleged that the insured made false declaration in support of the claim and it was a case of attempting fraudulent means of obtaining claim from the insurance company," the official said.

The bank then decided to go for a Forensic Audit and in its opinion, the Forensic Auditors claimed that a systematic fraud was done by the borrower company in alleged collusion with it's consultant to defraud the banking system, said the official.

"It came to light that company used bogus bills for availing term loan, used bogus purchase and sales invoice."

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