New Delhi: The Central Bureau of Investigation (CBI) has registered a Rs 975-crore bank fraud case against Mumbai-based Mandhana Industries (now GB Global Limited) and its promoters. The case has been filed for allegedly defrauding a consortium led by Bank of Baroda (BoB) of Rs 975.08 crore.
Former Managing Director, Purushottam Chhaganlal Mandhana, former Executive Director Manish Biharilal Mandhana, and a few others have been named by the CBI in the case. The case was registered on the basis of a complaint received from the bank in which it alleged that the directors of the company defrauded the consortium in a well-knit criminal conspiracy to funnel funds.
The audit also indicated fraudulent transactions and dealings with related parties, showing circular trading and diversion of funds.
The 39-year-old company controlled by the Mandhana family started availing credit facilities from the Bank of Baroda in 2008, but the account was declared a non-performing asset on December 31, 2016.
A forensic audit was ordered by the bank, which exposed a number of irregularities, including diversion of funds to settle inter-corporate debts, not using a Trust and Retention Account (TRA) to route Rs 420.39 crore during July 2016 to September 30, 2017.
Mandhana Industries Limited is a vertically integrated, multi-dimensional textile and garment manufacturing company spread over multiple locations and has presence across operations from yarn dyeing to garment manufacturing.
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