The Central Bureau of Investigation (CBI) on Friday conducted searches on the premises of Delhi-based Jay Polychem India Limited and others in connection with the allegations that they cheated a consortium of 13 banks, causing a loss of ₹1,800.72 crore.
“The searches were carried out at three locations in Delhi, on the official and the residential premises of the accused persons,” said a CBI official.
Among those named in the FIR are Satinder Singh Madhok, Sandeep Singh Madhok and Jaspark Speciality Chemical Private Limited. Look out circulars have been issued against the Madhoks Prakash Kaur, Harneet Kaur and Sumohita Kaur.
The case has been registered on a complaint from the State Bank of India, which led the consortium that extended credit facilities to the company. The accused are into wholesale import and trade of industrial chemicals, petrochemical products and agro commodities. It also forayed into other activities, including oil exploration.
It is alleged that the loan account had been running irregular since May 2014 due to continuous instances of Letters of Credit devolvement of all the banks. The account turned non-performing assets in August 2014.
A scrutiny of financial transactions allegedly revealed a difference of over 45% in the value of the inventory and creditors over a span of five to seven days, indicating potential manipulation of books of accounts. The debtors’ balance in March 2015 was ₹1,452.69 crore, which reduced to ₹679.62 crore in the next financial year. It meant that the outstanding was either received or written off.
However, there were no indicators of debt write-offs, raising suspicion. Bank statement analysis indicated only a total inflow of about ₹294 crore during the year. Further inquiry revealed that several companies shown to have been debtors existed only on paper, with common/overlapping directors. Their offices could not be located.
The Letters of Credit were issued to potentially suspicious parties, seven of which with ostensible transactions involving ₹453.59 crore were identified. Apart from allegedly diverting funds, the accused persons had also mortgaged the same properties to different lenders.