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The CBI has registered two separate cases against Varun Industries for alleged bank fraud of more than Rs 388 crore, officials said Wednesday.
The company, its promoters and directors Kailash Agarwal and Kiran Mehta were booked in the two fresh cases registered on separate complaints from the Central Bank of India and Canara Bank, they said.
The Central Bank of India has alleged that it has suffered a loss of Rs 269.29 crore, while Canara Bank pegged the losses to be around Rs 118.88 crore, they said.
"The accused company had availed PCL facilities for the export of steel and kitchenware items, but it was revealed that at least on three occasions, the beneficiaries of Packing Credit Limits (PCL) were not dealing with the steel and kitchenware items," the FIR pertaining to Canara Bank said.
In its FIR registered on the complaint of Canara Bank, the Mumbai unit of the CBI's Banking Securities and Fraud Branch noted that the proceeds in the PCL facilities were diverted to other activities.
It is also pointed out in the complaint that Varun Industries was mainly dealing with two companies in Dubai -- Al Rad International Trading and White Impex General Trading LLC -- and most of the sale turnover was with them only.
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"It is further alleged that the accused company and its group companies were the only suppliers of these two Dubai-based companies. Criminal misconduct of public servants are suspected since PCL beneficiaries were not dealing with the steel and kitchenware items, though the Packing Credit was opened for the same," it said.
The Central Bank of India had alleged that the company offered personal guarantees of Kiran N Mehta and Kailash S Agarwal to secure credit facilities availed by the company.
Besides allegations of funds diversion, the bank alleged that the company failed to arrange funds to meet the liabilities against the devolved Letters of Credit and other commitments as a result the bank declared the account as NPA on April 17, 2012 with outstanding balance of Rs 269.29 crore as per RBI guidelines.
"The company and its promoter directors (Kiran N Mehta and Kailash S Agarwal) siphoned off the fund in a pre-planned manner by various methods as mentioned above which included the funds availed from our bank, with dishonest intention of causing wrong loss to our bank to the extent of (Rs) 269.29 crore and wrongful gain to VIL to the extent of the said the amount of Rs 269.29 crore," it alleged.
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