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.

Also read: Russia Steps Up Production Of Some Military Hardware By More Than Tenfold

Spriha Rai

Recent Posts

Dr Rajeshwar Singh To Honour Forest Personnel At Environment Warriors 4.0

Dr Rajeshwar Singh has been actively promoting environmental conservation initiatives across his constituency. His participation…

23 mins ago

CM Yogi Inspects Ganga Expressway Progress; Highlights Technological Excellence

Chief Minister Yogi Adityanath reviewed the ongoing construction of the Ganga Expressway connecting Meerut to…

4 hours ago

Pahalgam Attack: Karnataka Minister Says Terrorists Did Not Ask Victims’ Religion

Karnataka Minister Timmapur on Pahalgam attack: Terrorists didn’t ask victims' religion before shooting, says they…

5 hours ago

Canada: Nine Die As Driver Rams Crowd At Lapu Lapu Filipino Festival

A black SUV plowed into a crowd at Vancouver's Lapu Lapu Filipino Festival, killing nine…

6 hours ago

Indian Navy Successfully Conducts Anti-Ship Missile Drills; Reaffirms Combat Readiness

The Indian Navy successfully carried out an anti-ship missile exercise on Sunday, demonstrating its preparedness…

7 hours ago

From Apples To Saffron: PM Modi Celebrates India’s Agricultural Innovations

PM Modi praised India’s environmental achievements and the 'Ek Ped Maa Ke Naam' initiative during…

8 hours ago