The CBI has booked a Gujarat-based businessman, the companies associated with him and others, in three more cases alleging bank loan fraud of about ₹192 crore.
The cases have been registered on complaints from the State Bank of India (SBI). In the first FIR, the bank has alleged a wrongful loss of ₹87.49 crore. It names Chem Edge International Private Limited, Bharatbhai Shah, Fenil Bhratbhai Shah, Ardor Overseas Private Limited, Ardor Structures Private Limited and others as accused.
Chem Edge International, a company that traded in chemicals, was incorporated in August 2009 in the name of Ardor Enterprises Private Limited. A consortium of seven banks, led by the Bank of India (BoI), had sanctioned ₹316.34 crore in credit limits to the company. The SBI’s share was ₹93.84 crore.
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Declared non-performing asset
The account was declared non-performing asset (NPA) in October 2016 due to diversion of funds, non-routing of sale proceeds through the consortium banks and other reasons.
The forensic auditor reported that offices of the company’s major debtors were either closed or vacated, indicating that the transactions were dubious. It also suggested manipulation of stock statements.
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The company had transactions worth ₹1,357.07 crore with one Spectrum Corporation. The auditor found that the firm did not have any VAT registration and its office premises were vacated, as alleged.
The second FIR names Ardor Global Private Limited, Mr. Shah, Ardor Overseas, Ardor Structures, Greenland Infracon, Jayco Synthetics and others. In its complaint, the bank alleged that Ardor Global was sanctioned ₹385.75 crore by a BoI-led consortium, wherein the SBI’s share was ₹66 crore. This account also turned NPA in October 2016, causing a loss of ₹59.10 crore to the bank.
In the third case, the agency has named Ardor International Private Limited, Mr. Shah, Himalaya Darshan Co. Op. Housing Society Limited, Greenland Infracons and others as accused. The company was sanctioned credit limits of ₹67.40 crore in March 2013. The account was declared NPA in November 2016, causing a loss of ₹45.72 crore to the SBI.
The agency had earlier registered four cases involving several of the accused persons, including Mr. Shah. One case was against Chem Edge International and its directors for allegedly cheating the BoI of ₹98.88 crore.
Another case
Another case was instituted on a complaint from the Central Bank of India against Ardor Global and others. Two other cases were against Chem Edge International and Ardor Global, involving over ₹150 crore.
As part of the money-laundering probe, the Enforcement Directorate has attached assets worth ₹204.27 crore of the Ardor group of companies in a bank loan fraud amounting to ₹488 crore.