CBI Raises A Case for SBI, and Punjab and Sind Bank for allegedly being cheating of over Rs. 131 crores

It has come to light recently that the State Bank of India (SBI) and Punjab and Sind Bank, two of the most trusted banks in India, have been cheated of over Rs. 131 crores in two separate fraud cases. The first complaint was registered by the State Bank of India (SBI) against a private company that has its headquarters in Gujarat’s Ahmedabad and many others including directors, public servants, etc on the allegations of cheating the State Bank of India of Rs 67.07 crore. The company in question was responsible for making cotton yarn, knitted fabric, and other finished products.

It is said that earlier in 2011 to 2015, the accused, entered a conspiracy to cheat the SBI through forgery or falsification of accounts and diversification of funds. The accused company allegedly availed of Fund Based Working Capital (FBWC) with SBI, MCB, Vapi Branch. It was further alleged that only around 20% of its receipts and payments from its debtors and creditors, respectively, were routed through banking channels, while the remaining amount was siphoned off. Searches were conducted at 10 places including official and the residential premises of the accused company at Silvassa and Mumbai following which a number of incriminating documents and articles were discovered.

The second complaint was registered by Punjab and Sind Bank against another borrower company that is private in nature, and based in Delhi. The complaint was lodged on grounds of being cheated Rs. 678 crores by way of diversion. Following the complaint, searches took place in nine locations related to the accused company. Meanwhile, the CBI continues its investigation in both cases simultaneously.

SBI and Punjab and Sind Banks have been among the top banks in the last financial year, providing good service to its people. However, these two cases of fraud and loss on their part make it difficult for them to be at the top for long.


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