Mumbai: Tata Capital Financial Services Ltd (TCFSL) has lodged a cheating complaint with the economic offences wing (EOW), saying that a private firm had not repaid it a loan of Rs 4.21 crore.
The police are probing the case against Sanjeev Gupta and Bhadranath Gupta, both directors of Color Copi Ltd. A senior manager of TCFSL filed the complaint, stating his firm provides financial assistance to small and medium enterprises besides offering infrastructure finance, personal loans etc.
The complainant said that in August 2012 the Guptas approached TCFSL, saying their company provides printers to its customers. The duo said they required finance to purchase various types of brand new printers to be installed in their clients’ offices located across India. The Guptas also submitted documents showing the finacial status of their company to TCFSL. A credit analysis was carried out and a term loan facility of Rs 4.21 crore was sanctioned to Color Ltd in August 2012, the complaint said.
It further said that at the time of availing equipment finance, Guptas also furnished irrevocable power of attorney, Escrow agreement etc. It was agreed between the two parties that the assets (printers) to be purchased with the loan will be hypothecated. The Guptas later informed TCFSL that they purchased 97 printers. When the TCFSL officials insisted on inspecting the printers at their installed locations, the Guptas allegedly avoided their calls, raising suspicion.
A TCFSL team visited M/s Godren & Boyce, Vikhroli where, as per the letter dated October 16, 2012, 15 printers had been installed. But Godrej & Boyce did not entertain the TCFSL team and askedthem tocomewith the Guptas.
Prima facie the police probe found that Guptas did not buy 97 printers as mentioned in the agreement-—some of the purchased printers were second-hand. “We are probing thecase and recording the statements of the people concerned. We have not arrested anyone yet,” said a police officer.
The Times of India, February 26, 2014