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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