South Mumbai company is under CBI scanner for Rs 74-crore 'fraud'

The Central Bureau of Investigation (CBI) has registered a case of cheating and criminal conspiracy against a private company based in Nariman Point for allegedly causing losses of Rs 74 crore to UCO Bank.

An FIR was registered against M/s Akshata Mercantile Private Ltd (AMPL) and unknown UCO bank officials on the basis of a complaint by Ashok Makhija, general manager with UCO Bank, a CBI official said.

AMPL is engaged in the business of trading in galvanised plates as well as corrugated sheets. "As per the plaint, the company had submitted four bills together worth Rs 74.82 crore in August 2015 to UCO Bank, Nariman Point Branch for negotiation. All four bills were discounted by the bank against Letter of Credit (LC) issued by Indian Overseas Bank, Fort Branch, and remitted to Allahabad Bank for crediting in the account of AMPL," said a CBI official.

On the same day, AMPL transferred the entire amount to various accounts. "When UCO Bank presented four bills to IOB for acceptance of documents, the applicant of the bills refused to accept them, stating the documents were not as per LC terms. The amount was recalled from AMPL. But they did not repay the dues, causing Rs 74.82 crore loss to UCO Bank, by discounting the bills without compliance of LC terms," said the officer.