After the filing of two independent cases by Canara Bank and SBI, the Central Bureau of Investigation has charged the fraud to the length of ₹ 7,926.01 crore and ₹ 313.79 crore each to each.
Canara Bank filed the first case against a private firm in Hyderabad, including its CMD, other directors and several anonymous public servants. It was supposed that through multiple banking arrangements, the private company had benefited credit facilities.
It was claimed that the charged had faked various books of accounts, covered up stock statements, interfered with balance sheets and allied in tampering of funds. It was also alleged that a loss of about ₹ 7,926.01 crore was caused to Canara Bank and other member banks due to the diversion of loan amounts consented by the allied group. This allied group was formed with several banks which is led by Canara Bank. The CBI said that the amount was made NPA and the swindling was accounted. Although, the names of those who are arrested are concealed.
Retrieval of the accused records was a subsequent result of the searches at the properties of the private firm at Hyderabad.
State Bank of India filed the second case against a private firm in Chennai, including its Chairman, Directors and other workers.
It was supposed that the debtor firm utilized around ₹ 310 crore from SBI. The account was made NPA and proclaimed a fraud, causing a loss of approximately ₹ 313.79 crore to SBI.
The CBI said that the retrieval of claimed records was led by the searches at the accused property in Chennai.
Afterwards, Canara Bank provided an utterance to the exchanges. It explained that the firm was relishing holds from several banks under multiple banking arrangements from 2001. Followingly, an association was formed in 2013 with Canara Bank as the leader of other 13 banks. Out of the total approved limit of ₹ 4765.70 crore, only ₹ 678.28 crore was the share of Canara Bank. On 2020 February 02, the account was announced fraud and reported to RBI. According to the advised standards, Canara Bank has made 100% provision to this account. On 2018 December 26, the firm was proclaimed as an intentional non-payer by Canara Bank. The total fraud amount is considered to be ₹ 7926.01 crore and the amount of loaning made by the 14 banks is ₹ 4765.70 crore. The remaining amount was advanced through multiple banking arrangements. The case was acknowledged by NCLT, Hyderabad on 2018 October 10. Currently, the firm is under the action of clearance.