Business

CBI Charges Mandhana Industries With Rs 975 Crore Bank Fraud

On Tuesday, officials stated that the CBI has launched an FIR against Mumbai-based Mandhana Industries (now GB Global Ltd) for allegedly defrauding a consortium led by Bank of Baroda of Rs 975.08 crore.

The CBI action comes after the bank filed a case alleging that former Managing Director Purushottam Chhaganlal Mandhana, former Executive Director Manish Biharilal Mandhana, and a few others cheated the consortium in a well-knit criminal conspiracy to launder cash.

The Mandhana family’s 39-year-old company began receiving credit facilities from the Bank of Baroda in 2008, however, the account was deemed a non-performing asset on December 31, 2016.

The banks ordered a forensic audit, which revealed a number of irregularities including the diversion of cash to settle inter-corporate debts, the failure to use a Trust and Retention Account (TRA) to route Rs 420.39 crore between July 2016 and September 30, 2017, and fraudulent purchases.

The audit also revealed fraudulent transactions and dealings with connected parties, as well as circular trading and fund diversion.

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Spriha Rai

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