The Central Bureau of Investigation (CBI) has filed a Chargesheet against Parekh Aluminex Ltd, and former officials of Indian overseas bank and Directors and Promoters of other associated companies, before a Special Judge for CBI Cases, at Mumbai. The list of accused include the company’s Directors, it’s Chartered Accountant, the then officials of Indian Overseas Bank, the Directors and promoters of associated companies and firms for allegedly causing a loss of Rs 297.80 Crores to the bank.

It has been alleged that the accused persons and entities were involved and aided in diversion of funds and facilitated the siphoning of funds by submitting fake and forged purchase invoices and Letter of Credits (LC). Indian Overseas Bank’s Mumbai branch has disbursed credit facilities to the tune of Rs. 292.20 Crores under Consortium Banking arrangement. The company allegedly adopted a modus operandi of submitting balance sheets with inflated and fabricated numbers for the purpose of availing credit facilities with the banks. It has further been alleged in the Chargesheet that the accused floated other firms & shell companies and made the employees / friends as directors of the company solely for the purpose of inflating the sales and turnover of the company. Further, the loan proceedings were then circulated between those companies under the guide of LC transactions that were not backed by any actual business. The company also diverted LC proceeds to real estate business and huge amount was allegedly diverted to various Realtors of Mumbai.

During investigation, it was alleged that accused devised the methodology known as Netting. They had concealed/suppressed the actual amount of borrowing liabilities. Loans availed outside the consortium banks were not shown in the balance sheet. The additional amount of loan were allegedly adjusted against investments made in Real Estate and other businesses. It was also alleged that the company misrepresented the facts and inflated the sales, stock holding levels and trade debtors in the balance sheet. It was further alleged that the bank officials had shown undue favours during the processing, sanctioning and enhancement of loan from time to time .

CBI has registered several cases against the accused including said private company based at Mumbai, its Directors & others. After investigation, chargesheets in seven cases have been filed for causing an alleged loss to various banks, such as, Indian Overseas Bank to the tune of Rs.297.80 crore(approx); SBT to the tune of Rs.133.61 crore(approx); Dena Bank to the tune of Rs.183.83 crore(approx); Corporation Bank to the tune of Rs.60 crore(approx); IDBI Bank to the tune of Rs.40 croe(approx); SBI to the tune of Rs.122.07 crore(approx) & EXIM Bank to the tune of Rs.80.30 crore(approx).

Parekh Aluminex Ltd is purportedly engaged in manufacturing of Aluminum Foil Containers, Aluminum Foil Rolls, Lids and other related products etc.

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