IDBI Bank Loan Fraud: ED Raids Ghosh Brother group of companies in Assam
Moneylife Digital Team 17 November 2021
The enforcement directorate (ED) on Tuesday carried out a search operation at various business and residential premises of Ghosh Brother Group of Companies situated in Assam under the Prevention of Money Laundering Act (PMLA). It seized incriminating documents and unaccounted cash and gold jewellery worth Rs63 lakh.
In a statement, the ED says, "The promoter and director of Ghosh Brother Group of Companies defrauded the IDBI Bank to the extent of Rs124 crore, by taking loan based on fake and fabricated documents."
ED says, "Money laundering investigation conducted by the ED revealed that Ghosh Brothers Group of Companies and its promoters and directors Pranab Ghosh, Pratul Ghosh and Gita Rani Ghosh diverted part of the bank loan amounts after rotating amongst various accounts maintained by the above entities with other banks to the accounts of other group companies as well as to unrelated parties." 
"Majority of the companies were registered at the same address of Ghosh Brothers Motors Pvt Ltd and found to be shell companies which were used to rotate and divert the proceeds of the loan," the agency added. 
Earlier in June this year, the Central Bureau of Investigation (CBI) had registered a case against Guwahati-based Ghosh Brothers Automobiles and its promoters and directors in a bank fraud case worth Rs168 crore.
A spokesperson for CBI had said that the agency had booked Pranab Kumar Ghosh, Pratul Kumar Ghosh, Gita Rani Ghosh and Prabir Kumar Ghosh, all promoters-directors of Ghosh Brothers Automobiles. Besides the promoters and directors, the CBI also named Arunabha Chattopadhya, chartered accountant (CA), unknown bank officials and private persons.
The official said that the case had been registered based on a complaint from IDBI Bank for causing a loss of Rs168.62 crore.
It was alleged that term loan and cash credit facility were sanctioned fraudulently to the private company based at Guwahati to the tune of Rs64.67 crore from IDBI Bank's Guwahati branch for purchasing vehicles.
It was further alleged that the accused availed loan by submission of false documents and also the accused indulged in diversion of money for the purpose other than for which the loan was sanctioned, and thereby caused loss of Rs168.62 crore as of 31 January 2021 to IDBI Bank.
As of 1 July 2020, the outstanding balance was Rs153.38 crore and the account became non-performing asset (NPA) due to the non-payment of dues to IDBI Bank.
2 weeks ago
How it is possible that such a big amount of loan turned NPA.
2) Although the loanees have submitted false and fabricated documents to the bank but who stooped Bank officials to check the genuineness of these documents.
3) CBI /ED have to check that there is no connivance of Bank staff & CA firm of the borrower.
4) There are bank' s guidelines for post sanction monitoring of loan to arrest such type of diversion of funds
Union Govt Can Now Extend Tenure of Home, Defence, IB, RAW Chiefs for up to 5 Years
Moneylife Digital Team 16 November 2021
The Union government extended the tenure of the secretaries of the ministry of home and ministry of defence as well as for the director of Intelligence Bureau (IB) and secretary of Research and Analysis Wing (RAW) for two years....
Transfer of Madras HC CJ to Meghalaya HC: Is There More to It Than Meets the Eye?
V Venkatesan (The Leaflet) 11 November 2021
The abrupt transfer of Madras High Court Chief Justice Sanjib Banerjee, to the Meghalaya High Court is not only controversial, but raises a host of issues, writes V VENKATESAN
In what is widely seen as a punitive decision,...
PM CARES Fund: The Mystery of Rs100 Crore Allocated for Vaccine Development
Moneylife Digital Team 10 November 2021
Last year in May, the prime minister’s office (PMO), in an official release, had announced allocating Rs100 to support the COVID-19 vaccine designers and developers from the PM’s Citizen Assistance and Relief in Emergency Situations...
Maharashtra Drags Its Feet on the Right to Services Act while Karnataka Surges Ahead
Vinita Deshmukh, 10 November 2021
The Maharashtra Right to Public Services Act (RTS) 2015 was a shot in the arm of citizen empowerment. Its objective is to ensure a transparent, efficient, and time-bound delivery of public services to citizens. This includes the...
Free Helpline
Legal Credit