Another case of massive loan defaulter has come in the public eye after SBI reaches CBI for complaint. Here’s all about Rs 411 crore bank fraud by Ram Dev Rice Mill.
Fraud by Ram Dev International – Rice Mill
The Central Bureau of Investigation filed an FIR against the directors of Karnal based rice mill and exporters. The CBI booked Mr Naresh Kumar (MD), Mr Suresh Kumar (Director) and Ms Sangita (Director) for allegedly cheating a consortium of six banks for Rs 411 crores. The defaulters already fled the country to Dubai according to sources before SBI complained to CBI.
Ram Dev Rice mill was engaged in the export of Basmati rice to the Middle East and European countries. According to the complaint, the company has three rice milling plants, besides eight sorting and grading units in Karnal district. Also, it has offices in Saudi Arabia and Dubai for trading purposes.
The Report- Ram Dev International Rice Mill
The account became a non-performing asset on January 27, 2016. The banks conducted a joint inspection of properties after eight months in August and October and found Haryana police deployed there. An inquiry after that revealed that the directors had left the country. Besides, they removed all the machinery from the old plants and fudged balance sheets to gain at the cost of the bank’s funds unlawfully. The case came into light when SBI ordered a special audit and found falsified accounts of the accused.
No Investigation Due to the Lockdown
The CBI has not started the investigation process due to the coronavirus lockdown. However, the agency will begin summoning the accused, in case they do not join the investigation. Ram Dev International Rice Mill has cheated Rs 173.11 crores of SBI alone by way of unauthorised removal of plant, machinery from factory premises, and showing loans from banks as a capital infusion via circular movement of fund transfers.
Further, it owes Rs 76.09 crore to Canara Bank, Rs 64.31 crore to Union Bank of India, Rs 51.31 crores to Central Bank of India, Rs 36.91 crores to Corporation Bank and Rs 12.27 crores to IDBI.
In all, the list of economic offenders flying away from the country is long. However, the CBI seems positive in getting Red Corner Notices against economic offenders soon.