CBI Starts Probe against IL&FS Securities in Rs330 Crore Bank Fraud Case: Report
Moneylife Digital Team 13 November 2023
The central bureau of investigation (CBI) has registered a case against IL&FS Securities Services Ltd (ISSL), the company officials and others for allegedly causing a loss of Rs330.43 crore to Central Bank of India and other banks by way of diversion of disbursed bank funds, says a report.
According to a report from Free Press Journal, on 6th November, Central Bank of India's deputy general manager PK Khurana filed a complaint against the Infrastructure Leasing & Financial Services Ltd (IL&FS) group company, the company officials and others.  
In the complaint, Mr Khurana says during 2016 and 2019, Central Bank of India, sanctioned fund-based (working capital facility) and non-fund-based facilities to ISSL. The amounts were Rs50 crore out of a total limit of Rs250 crore and Rs75 crore out of a total limit of Rs900 crore, respectively, under consortium and multiple bank arrangements.
ISSL diverted the funds in the form of inter-corporate deposits (ICDs), providing unsecured loans to IL&FS Employees Welfare Trust and invocation of bank guarantee in a reported fraudulent transaction, causing wrongful loss of about Rs330.43 crore to Central Bank of India and other banks as of 31 January 2022.
"After declaring the account as fraud, it took some time to ascertain the necessary data and information from the other lender (on behalf of whom the complaint is filed), to prepare the complaint, and to take the necessary steps to obtain internal approvals. Hence, the complaint is filed now," Mr Khurana says in the complaint.
CBI has registered a case on charges of criminal conspiracy, cheating and criminal misconduct by a public servant under the relevant sections of the Indian penal code (IPC)  and Prevention of Corruption Act (PCA), the newspaper says.
7 months ago
very much surprising how our financial system created by the grand old party has so many loopholes for people to use and banks heads helping them for the same and all these are tax payers money hard earned
7 months ago
Good how srei have been defrauding people
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