In a recent turn of events, the borrowers of a private firm based in Lajpat Nagar, Delhi have duped SBI of a whopping 1800.72 crores. The centralized bank has registered a complaint with the CBI authorities who are currently looking into the case. They have already raided 3 locations and are on the hunt for more. The directors and guarantors of the company are also in the remand of CBI.
The fraud case
A Delhi Lajpat Nagar based company named Jay Polchem ltd. has been allegedly involved in a fraud case of 1800.72 crores. The bank that they borrowed the money from is the centralized state bank of India. Ernst and Young, on forensic audit, stated that there are “alleged diversion and siphoning off of bank funds, fictitious transactions, forgery” by the company which led SBI to file an FIR against them. The company’s promoters, guarantors, directors, unknown private and public persons are also mentioned in the FIR lodged by the bank.
CBI on the matter
Regarding the raids in Delhi, a CBI spokesperson said, “Searches are being conducted today at three locations in Delhi at the office and residential premises of the borrower company and other accused”. He further added, “It was alleged in the complaint that the accused had cheated the State Bank of India led consortium banks to the tune of Rs 1800.72 crore (approx.) by way of diversion / siphoning off bank funds, fictitious transactions, cheating, forgery, criminal conspiracy, etc.”
SBI must be diligent from next time
There are many such bank fraud cases that came to light in the past few decades. Thus the centralized and private banks must be diligent enough and carry out proper investigations before lending such big amongst to the flag bearers. When they are lending money to any such individual or company, they must check the background of the borrower and also ask for a worthy mortgage in case there happens to be an instance like this. The bank fraud cases have grown three folds in today’s time and thus being careful is the one MANDATORY step that must be taken by the bank authorities to prevent such frauds.
The Policy Times suggestion
- The banks are working uninterruptedly to provide the common people the benefits that we all desire. If people con them like this then it is evident that the services will succumb and common people will suffer. Thus, the RBI and bank heads must make policies to nab such culprits and restrict any such transactions that seem doubtful.
- The justice authorities must also take action against the culprits in a stricter manner so that any further such fraud cases do not occur. The CBI must carry on with the investigations and thereby arrest the culprits soon.