CBI Raids 50 Places Across the Country in Bank Loan Frauds Worth Rs1,135 crore: Reports
The Central Bureau of Investigation (CBI) had conducted searches in more than 50 locations in 12 states and union territories (UTs) in connection with bank losses totalling over Rs1,134.58 crore, say reports.
 
An official from CBI told IANS that said several teams carried out the raids in 18 cities including the residences and business premises of companies, promoters, directors and bank officials for an amount worth Rs640 crore.
 
The places where the raids took place include: Delhi, Chandigarh, Mumbai, Thane, Pune, Valsad, Surat, Ludhiana, Gurugram, Gaya, Palani in Tamil Nadu, Bhopal and Kolar in Karnataka.
 
According to a report from the Hindu Business Line, there have been 14 fresh cases registered against the accused, including various companies and firms, their promoters and directors and bank officials. 
 
Listing the cases, the CBI had said that it acted upon a complaint by the Export Import Bank of India (EXIM Bank) alleging bank fraud by Winsome Diamonds and Jewellery Ltd, leading to a loss of Rs202 crore. Taking this into account, the CBI now has 16 cases registered against Winsome and its promoters.
 
"In the case registered on Tuesday, Winsome Diamonds and Jewellery has been named as an accused. Jatin Mehta, the promoter and director, Ramesh Parikh, Hariesh Mehta, Jai Kumar Kapoor, Hari Mohan Namdev, all directors of the company, have been named in this case. Haytham Salman Ali Abu Obediah and unknown public servants have also been named," the report says.
 
Following complaints by Bank of India (BoI), a case has been registered against Eskay K’N’It (India) Ltd (popularly known as Tayal group), that alleges wrongful loss of Rs91.36 crore. In addition to the company, Navin Kumar Tayal, its chairman; Anand Zawar, managing director; and Naresh Chandra Sharma, Trivendra Shambhu Singh, and Manmohan Balbir Ahluwalia, all directors of the company, have been named in the case. Pravin Kumar Tayal and Ram Pratap Tayal, guarantors of the company, and unknown public servants have also been named in this case.
 
A case against Ludhiana-based Supreme Texmart has been lodged by the CBI on a complaint filed by State Bank of India (SBI), the report says, adding the amount of ‘wrongful loss’ caused is pegged at Rs143.25 crore and Ajay Gupta, the company's MD and guarantor; Gautam Gupta, a guarantor; and Sanjay Gupta, a shareholder and guarantor, have been named in the case.
 
Gold Leaf International Private Ltd, a related party and guarantor, and unknown public servants have also been named in this case, it added.
 
According to the newspaper, cases against promoters and representatives of Aegan Batteries (Rs98.75 crore), Ramnandi Hotel and Resorts Ltd (Rs131.79 crore), Nefto Gas India Pvt Ltd (Rs93 crore), SL Consumer Products Ltd (Rs55 crore), Samprash Foods Pvt Ltd (Rs60 crore), International Megha Food Park Ltd (Rs40.17 crore), Ranjeet Automobiles (Rs34 crore), Jalpa Textiles Pvt Ltd (Rs28 crore), Supamed Trading Pvt Ltd (Rs57 crore), Asuti Trading Pvt Ltd (Rs50 crore) and others have also been filed.
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COMMENTS

Dr.Dhananjaya Bhupathi

1 week ago



https://drive.google.com/file/d/15jzUgnNW975KF2TJ03NBrnWwuBbDc4x-/view?usp=sharing
1. Unless & until lazy duds of adhocism in PMO/UFM are replaced & refurbished by magnanimous visionaries, nothing can be achieved by the Indian PRIME MINISTER & Union Finance Minister.
2. thereat.https://www.youtube.com/watch?v=T7fOf8rUrdw.
3. SATYAMAEVA JAYATHE!!!

REPLY

A BANERJEE

In Reply to Dr.Dhananjaya Bhupathi 1 week ago

Very correct.

Ramesh Poapt

2 weeks ago

cleaning of endless dirt!

VASANT KULKARNI

2 weeks ago

AT LEAST SOME BEGINNING IS MADE. LET US SEE HOW IT WORKS.

Ramesh Bajaj

2 weeks ago

This seems to be a tip of an iceberg. There are so many unlisted companies, where the hapless shareholder is ripped off, and he doesn't have resources to fight.

Veeresh

2 weeks ago

Interesting to observe that the 20 to 200 crore bracket who used to think they were invisible have now started jumping like frogs in a hot bucket. Below 20 crores was usually easy meat to fry, over 200 crores to 2000 crores could afford protection and over 2000 crores was part of the larger political horizon. It was the 20 to 200 lot who were broadly into making it a multiplier family business where cookie cutter models of the same scams were pulled off with impunity assuming they would be below the radar.

A BANERJEE

2 weeks ago

After waiting for five long years, at last some action is being taken now and we hope that these searches will definitely unearth--if not gold, bullion and cash--incriminating documents which will lead the investigators/authorities to the brain behind the fraud and, from there, to the person(s) at whose instance and with whose patronage this has been perpetrated. What is needed is to identify the greedy and corrupt bureaucrats/bank executives without whose complicity and pecuniary partnership such frauds simply cannot take place. It is also hoped that the CBI is assisted by the ED/IT/SFIO sleuths in the operations. What is strange, however, is the missing name of Kolkata from where every fraud invariably is generated from times immemorial. But, I am sure, the investigators must have prepared themselves very well and did the recce faultlessly. Wish the operations full success.

AUM Growth of Housing Finance Companies Halved in H2-FY2019: Report
The liquidity challenges that followed the debt default by Infrastructure Leasing & Financial Services (IL&FS) in September 2018 pulled down growth in assets under management (AUM) of housing finance companies (HFCs) in the second half of fiscal 2019, says a research note.
 
In its report, ratings agency CRISIL says, "Fiscal 2019 was a year of two contrasting halves. The first half saw stable growth and comfortable access to funding, with AUM growing at an annualised rate of about 21%. However, the second half brought a reversal of sorts with AUM growth plunging to around 10%. With funding access being affected, non-banks, including HFCs, were forced to curtail disbursements and focus instead on conserving liquidity."
 
The industry AUM stood at Rs12.4 lakh crore as on 31 March 2019, up 16% from same period a year ago. 
 
Krishnan Sitaraman, senior director at CRISIL Ratings, says, “Access to funding will determine the growth prospects for HFCs. As of now, lenders and investors seem to be differentiating between HFCs -- preferring those with strong parentage and credit profiles and going slow on those with a large wholesale portfolio. This will be reflected in business growth differing for these entities.”
 
Among the HFC segments, the ratings agency says the distinction between the two halves was the sharpest for non-housing loans –primarily developer loans and loans against property (LAP), which comprised a third of the total AUM of HFCs as on March 2019 that saw growth print around 5% (annualised) in the second half, compared with about 28% during the first half. Housing loans, on the other hand held up better, growing at close to 13% (annualised) compared with 18% in the first half.
 
Banks outpaced HFCs in home loans, given the HFCs’ growth slowdown, CRISIL says, banks managed to gain market share in home loans. "Indeed, for the first time in at least five years, banks, supported by portfolio buy-outs, outpaced HFCs in home loans and grew at 19% in fiscal 2019. With banks’ continued focus on retail growth, especially in this segment, and HFCs keen to conserve liquidity, the trend is expected to continue for a few quarters more."
 
Over fiscals 2020 and 2021, the ratings agency expects growth to revive to 12%-14% for HFCs, though it feels this would still be lower than levels seen in the past. This growth will be supported by mid-teens growth for the two largest players, constituting more than 50% of the industry AUM, it added.
 
To be sure, CRISIL says, limited ability to raise funds through commercial papers (CPs) and cautious call by a few players to reduce dependence on short term borrowings led to a decrease in the share of CPs in total on-book borrowings to about 7.5% as on 31 March 2019, down almost 450 basis points (bps) from around 12% as on 30 September 2018.
 
"Instead," it says, "many players resorted to securitisation to meet their liquidity requirements. In fact, the securitisation and direct assignment of mortgages more than doubled to around Rs93,000 crore in fiscal 2019 from about Rs35,700 crore the previous fiscal. External commercial borrowings also gathered pace, albeit in a limited way."
 
From an asset quality perspective, the sector saw overall gross non-performing assets (NPAs) inch up to around 1.4%, from 1.1% in fiscal 2018. That said, CRISIL says it believes two-year lagged gross NPAs are a better indicator of asset quality in mortgages because of their long tenures. That number stood at about 2.1% on March 2019, which is around 50bps higher than that as on March 2018.
 
While the reported NPAs in the developer financing portfolio have been low till now, they have been primarily supported by long moratorium periods and exits provided by refinance.
 
“In recent months, with incremental funding towards real estate coming off, asset quality concerns in the developer financing book have increased. The impact of refinancing slowing down will need to be monitored given that the ability of lenders to recover, in case of default, through liquidation of assets has not been tested in any material way till date,” says Subha Sri Narayanan, director, CRISIL Ratings.
 
According to the ratings agency, LAP is another segment that remains a monitorable, given the rise in delinquencies that have already been witnessed. 
 
It says, while the long-term growth prospects for HFCs remain intact, asset liability maturity management and liquidity conservation would remain front and centre for the next few quarters. 
 
The regulatory environment is also expected to evolve. National Housing Bank has recently tightened the permissible leverage levels and capital adequacy ratios for HFCs; further action could be expected from the regulator on the liquidity front with Reserve Bank of India (RBI) already having issued draft guidelines for non-banking financial companies (NBFCs) on liquidity risk management framework.
 
"Nevertheless, we believe HFCs with strong parentage and those with robust risk management systems and processes will be able to navigate the current environment better," CRISIL concluded. 
 
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COMMENTS

chanchalmantri100

2 weeks ago

Please write about why DoT not allowed Rcom asset sale in 22000 crore Jio...It would have stopped all issues and bank NPA there only...
Also write about why Govt not paying Power companies their due...Rinfra to get 4500 crore, Rcap need to get 6000 crore...

Krishnamoorthy Venkataraman

2 weeks ago

In case big NFBC fail in its contractual obligations, it will have impact on the entire banking system, when th RBI and government may have to take various steps, unpalatable to many and varied financial instituitons.

'Significant gap' in bank fraud occurrence and detection: RBI report
Terming timely recognition an important aspect that can reduce the economic costs of frauds, the Reserve Bank of India on Thursday said that the country has seen a "significant" gap between occurrence and detection of bank frauds.
 
"The amount involved in frauds that occurred between 2000-01 and 2017-18 formed 90.6 per cent of those reported in 2018-19," the central bank said in its Financial Stability Report (FSR).
 
Giving further insight on the data, the RBI said that the systemic and comprehensive checking of legacy stock of NPAs of public sector banks (PSBs) for fraud during 2018-19 has helped unearth frauds perpetrated over a number of years.
 
"..and this is getting reflected in increased number of reported incidents of frauds in recent years compared to previous years," it added.
 
The RBI said that the recognition of date of occurrence is not uniform across banks and to ensure timely and assured detection of frauds in large accounts, the government issued a direction in February 2018 to all PSBs to examine all NPA accounts exceeding Rs 0.5 billion from the angle of possible fraud.
 
The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system. The June 2019 report also discusses issues relating to development and regulation of the financial sector.
 
In its report, the RBI has also highlighted the need for greater surveillance of large entities among the non-banking finance companies (NBFCs) and housing finance companies (HFCs) as their failure could have contagion affect, putting the entire sector into crisis. 
 
The recent development in the case of IL&FS and other NBFCs leading to a liquidity crisis like situation has prompted the RBI to respond.
 
The failure of a large HFC could erode 5.8 percent of the total Tier-I capital of the banking system, while that of a large NBFC could lead to loss of 2.7 percent of the Tier-I capital and a failure of one bank.
 
On the whole, the apex bank said that India's financial system remains stable while the resilience of banking sector has improved. The global geopolitical environment, however, poses challenges, it said. 
 
Reviving private investment demand remains a key challenge going forward while being vigilant about the spillover from global financial markets, the report said. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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Mahesh S Bhatt

2 weeks ago

Government doesnot want real time internal breaches information also private FII's listed companies donot pay for internal breaches Now with new IT Act may be but till fines / disclosures become norm Sab Chalta Hai Be Cool India hai Paisa banta hai sab khate hai par pakde nahi jate Mahesh Bhatt Kirticorp

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