CBI has arrested the Chairman and two directors of Vishal Exports Overseas Limited, a listed company in Ahmedabad, for allegedly defrauding Andhra Bank of around 21 crore by submitting fake and forged documents.
The Bank Securities and Fraud Cell of CBI, Mumbai had registered a case against the three on the complaint of Andhra Bank. The company is engaged in the export of agricultural commodities and also claimed to possess the status of Star Export House. The company had availed funds like Packing Credit Facility, Foreign Bill Discounting facility, Letter of Credit facility from a consortium of about 23 banks to the tune of around Rs 500 crores between 2004 and 2006.
CBI claimed that the company allegedly cheated other banks of its funds by adopting fraudulent means like furnishing bogus and forged documents to the bank, by getting Letters of Credit opened in favour of its own associate companies without underlying genuine business transactions.
Besides, the company also diverted the funds sanctioned by banks for its own purpose and failed to utilise for the purpose for which they were sanctioned. CBI had earlier registered three cases against this company and its Directors on the complaint filed by Punjab National Bank, Vijaya Bank and UCO Bank alleging cheating of its funds by the company to the tune of around Rs 190 crores.
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