Rs 53 crore bank fraud busted in Hyderabad, one held
Hyderabad: The Cyberabad Economic Offences Wing busted a bank guarantee fraud and arrested the managing director of a private firm for forgery and cheating a nationalised bank, union Bank of India, by exceeding his credit limits, to the tune of Rs 53 crores. The police have booked two cases against the firm and four of its directors. […]
Hyderabad: The Cyberabad Economic Offences Wing busted a bank guarantee fraud and arrested the managing director of a private firm for forgery and cheating a nationalised bank, union Bank of India, by exceeding his credit limits, to the tune of Rs 53 crores. The police have booked two cases against the firm and four of its directors.
The arrested person was K Santosh Reddy (36), a director and business contractor from Sanathnagar. The absconding suspects were N Srinivas (50), a civil contractor from KPHB Colony, K Gopal (42), a realtor from Madhapur and Surender Reddy (52) from Nellore of Andhra Pradesh.
In July, the management of the nationalised bank lodged a complaint with the Madhapur police alleging that the directors of Kompass Infrastructures Pvt Ltd, represented by Santhosh Reddy and his associates obtained bank guarantees to the tune of Rs 53 crore in a total of 39 transactions in favour of various beneficiaries like Hella Infra Market Ltd, HPCL and Infinity Projects.
Eventually, it was found out that in many of these transactions the suspect has not closed his transaction with the beneficiary company but was fabricating a fake bank guarantee and closing the transaction with the bank.
On verification by bank authorities, the same bank guarantee, with the same number was found to be available with both the bank and beneficiary as well. The suspect either submitted a fabricated guarantee to the beneficiary company or submitted the fake one to the bank for closure of the transaction.
Based on a complaint, the Madhapur police booked a case and subsequently transferred it to the Economic Offences Wing for further investigation as the amount of fraud was huge.
Investigations revealed that for bank guarantees, Santhosh kept properties of one of the directors as securities and his maximum sanction limit to take bank guarantees was only Rs.15 crores as per the bank norms.
Beyond the limit, the bank guarantee should be closed or renewed at the bank to get a new bank guarantee in its place. In order to get material from different companies beyond the sanctioned limit prescribed by the bank, Santosh created forged bank guarantees and submitted them to the companies as if they were issued by the bank. Similarly, he obtained 39 bank guarantees fraudulently and cheated on them.
Based on the technical evidence, Santosh was arrested from Jubilee Hills. Srinivas was issued a notice for questioning. The other two suspects are absconding. Police seized mail communication between the bank and the companies, mails between the bank and its head office and also forged bank guarantees created by the suspects.
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