It is believed that the trio assisted the key accused in the loan fraud case, gain access to the bank's funds illegally
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Three directors of different firms in Mumbaiwere arrested by the Economic Offences Wing (EOW) of the Mumbai police for their involvement in A Rs 290 crore banking fraud. The case was pursued after Axis bank registered the case with the NM Joshi Marg police last year.
The directors have been identified as 46-year-old Bhawarlal Bhandari, 40-year-old Premal Goragandhi and 41-year-old Kamlesh Kanungo. It is believed that the trio assisted the key accused in the loan fraud case, gain access to the bank's funds illegally.
The key accused is believed to be from Parekh Alluminex Ltd. Axis bank had initially given a Rs 125 crore loan to Parekh Alluminex Ltd in 2010. While the initial amount was duly repaid, subsequent sums of Rs240 crore from Axis bank and another Rs50 crore LC from Federal bank were never repaid despite restructuring from the banks side.
A report in the Hindustan Times quotes an officer investigating the case as having statet, "The bank’s internal probe concluded that the loan amount given to the firm was diverted to the company’s loan accounts maintained with other banks and was used for purposes other than what it was taken for. To get the loans, the names and documents of many firms were misused by the accused." It is also believed that more arrests, connected with to the case, are likely.
Also Read: Enforcement Directorate Registers Case In Alleged Rs 173 Crore Fraud In UBI
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