Ample Textile Corporation, Mumbai, its directors and others have been booked by the Central Bureau of Investigation (CBI) for allegedly cheating the Union Bank of India to the tune of Rs. 35.44 crore.
The company, which is in the business of embroidery work, had approached the bank’s textile market branch in Surat for credit facilities. The bank sanctioned Rs. 39.79 crore as loans under different heads.
However, the bank later found out that from the cash credit account of the company, funds were allegedly transferred to the accounts of two directors. More than Rs. 4.71 crore was also withdrawn from the account, while payments of considerable amounts were made to the entities whose line of business did not match with that of the borrower company.
Some of these entities were identified as Sumika Chemical Analysis Services, Abhilasha Plast, Blue Whale Enterprise and Meenakshi Enterprise.
The bank has, reportedly, alleged that the borrower company and its directors diverted the funds and did not make repayments. It turned the account into a non-performing asset in March 2016. By disposing of the mortgaged properties, only Rs. 5.85 crore was recovered by the bank.
The forensic audit report detected several financial irregularities. The account was declared a fraud in July this year and reported to the Reserve Bank of India for further action.