FIR against Siddhi Vinayak Logistics for loan fraud

New Delhi, Dec 24 The Central Bureau of Investigation (CBI) has lodged an FIR against Siddhi Vinayak Logistics Limited (SVLL) for allegedly committing a bank loan fraud of Rs 87.46 crore.

A senior CBI official said that the probe agency received a complaint in March 2021 from Uma Shankar Sinha, Assistant General Manager (AGM), Punjab National Bank (PNB) Zonal SASTRA Centre, Mumbai alleging that the accused have committed a bank loan fraud.

Sinha said that between 2013 and 2017, Roop Chand, the director of SVLL, sought a term loan of Rs 100 crore to purchase of 335 vehicles. The bank sanctioned the loan for purchase of 335 vehicles, however, the company provided list of only 240 vehicles.

As the bank suspected that the borrower did not purchase remaining 95 vehicles and diverted the funds, it appointed a chartered accountant to verify the genuineness of the transactions.

On internal investigation, the bank found that out of 240 vehicles extended as primary security, only 221 were hypothecated to PNB. One vehicle was hypothecated to the State Bank of India (SBI) and in respect of 10 vehicles, there was no charge of any bank. The details of remaining eight vehicles could not be verified due to non-payment of road taxes.

It was also revealed that some of the vehicles hypothecated to PNB were actually financed by Andhra Bank and the SBI, which means that the SVLL had availed multiple finance for the same set of vehicles.

"SVLL dishonestly and fraudulently disposed off the hypothecated asset with a view to cheat the bank. RTO registration of 95 vehicles were not submitted by the company. Either the borrower did not purchase 95 vehicles or they were not registered with appropriate RTO. The accused have caused wrongful loss of Rs 87.46 crores and made wrongful gain," the PNB alleged in the complaint.

The CBI said that after receiving the complaint they have lodged a case under relevant sections of the IPC.