Thursday, May 18, 2017

Rs 290-crore cheating case against aluminium firm, its five directors

Mateen Hafeez

Mumbai: A private firm and its five directors have been booked in Rs 290 crore cheating case. Officials of the city economic offences wing (EOW) said that after going through the company's financial transaction details, it seems that they might have floated a bogus front to transfer the money.A complaint was lodged jointly by S Sankarkumar, assistant vice-president and branch head of Axis Bank (corporate banking branch), and officials of the Federal Bank.
An officer said, “The firm, Parekh Aluminex, has an offi ce in Tardeo, with five directors. In 2010, the company initiated business with the two banks, seeking various loans.In 2012, the firm availed the facility of letter of credit (LC) for Rs 240 crore from Axis Bank and another Rs 50 crore LC from Federal Bank.“ In January 2013, the firm's main directdor, Amitabh Parekh, who used to take care of these affairs, died and the company stopped loan repayment.

The officer added that according to the complaint, the banks restructured the loans so that the firm could repay it.However, all attempts went in vain. Later, the loans taken by the firm were declared as nonperforming assets(NPA). “The banks appointed a private auditing firm before the loans were declared NPA. The auditors found that Rs 1,314 crore was outstanding towards various banks. Meanwhile, Axis bank initiated an inquiry and found that documents submitted for the Rs 240 crore LC were bogus and the amount was utilised to repay the firm's loans rather than using it for business. The inquiry also found irregularities by the firm,“ added the officer. Parekh Aluminex manufactures aluminium foils and aluminium containers. It has a factory in Silvasa, Gujarat.

The Times of India, May 18, 2017

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