Acting on the complaints of various banks regarding loan frauds, The Central Bureau of Investigation (CBI), premier investigating agency of India, conducted raids nationwide, which included three textile companies.
The textile companies, namely Supreme Tex Mart, Ludhiana; Jalpa Textiles, Surat and Eskay Knit (India) of the Tayal Group, Mumbai were raided by CBI and a case was registered against them.
As per the CBI officials, it was alleged that the accused directors and guarantors of the Ludhiana-based garment manufacturing and exporting company, Supreme Tex Mart in connivance with unknown bank officials and others, dishonestly and fraudulently availed credit facilities of Rs. 161.24 crore (approximately) from SBI, Commercial Branch, Ludhiana by resorting to falsification of accounts and forgery of documents, such as invoices & lorry receipts, falsely showing movement of goods purchased from various suppliers.
The company allegedly siphoned off the funds and defaulted in payment of the dues and caused a wrongful loss of Rs. 143.25 crore (approximately) to the bank.
Raid on Surat-based Jalpa Textiles was done following a complaint from Bank of Baroda against its director and guarantor. As per the complaint, the company had cheated Bank of Baroda to the tune of Rs. 28.20 crore (approximately) during the period July/August 2012 term loan facility, connected to purchase of 132 Jet Weaving Machineries.
The company purchased only 84 machines as against 132 machines which was financed by Bank. The accused persons diverted the funds for non-business purposes and thus caused loss to bank.
Tayal Group’s Eskay Knit, Mumbai, was also raided. As per reports, in 2008, Mumbai-based Eskay Knit (India) of the Tayal Group and few other companies borrowed Rs. 524 crore by defrauding the Bank of India and Andhra Bank.
Recently the Enforcement Directorate (ED) had attached Tayal Group firms’ assets worth Rs. 483 crore provisionally. It was said that company diverted these funds through of a maze of shell companies.