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Shri Lakshmi Cotsyn charged with Rs 68 bn fraud

Aug 11, 2021
Shri Lakshmi Cotsyn charged with Rs 68 bn fraud

Kanpur

According to the investigation by CBI, Shri Lakshmi Cotsyn Limited has been charged with committing fraud of Rs 68.33 billion by duping a group of 23 banks.

The company took financial assistance of Rs 73.77 billion from various banks for manufacturing blended fabrics, denim fabrics, terry towels, technical fabrics, ready-made garments, and blended suiting. Here, the CBI was the biggest lender and had an exposure of Rs 13.61 billion. Shri Lakshmi Cotsyn Limited’s loan was declared as fraud by the CBI to the RBI.

A court case has been registered against Shri Lakshmi Cotsyn Limited and its directors for committing a fraud with a consortium of 23 banks. The fraud amount totalled to be Rs 68.33 billion. As per the official statement given by the officials of CBI, searches are being conducted at nine different locations that include Roorkee, Noida, Kanpur, and Fatehpur.

Apart from investing the directors of the company, CBI is also going to investigate the chartered accountants, bank officials, stock auditors, statutory auditors, and empanelled valuers who are responsible for maintaining the balance sheet of the company, financial papers, and also issuing compliance certificates. All this is done to verify if they were all a part of the fraud.

According to the reports, the bank has also sold its obsolete stock to dubious entities which helped in rotating the money and saving on the taxes.

Source – Trak.in

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