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Another incident added to the long list of bank scams, the economic offence wing of Mumbai Police in an INR 4000 crore bank fraud case, arrested three directors of a private firm named Parekh Alluminex Ltd (PAL).
Axis Bank filed a complaint against the firm for cheating INR 250 crore, the police on Friday arrested Bharwalal Bhandari, Premal Goragandhi, and Kamlesh Kanungo. Other than Axis Bank, 19 banks have granted credit to the firm. This made the firm face CBI probe following a complaint by public sector lenders, including SBI and Indian Overseas Bank accusing of diverting the fund to real estate developers. The directors arrested are charged with floating fake invoices and manipulated bills in the name of fake companies to commit fraud at the bank’s main branch, Fort, using letters of credit.
The other directors' name which are been mentioned by Axis Bank are - Amitabh Parekh, Rajendra Gothi, Devanshu Desai, Kiran Parikh and Vikram Mordani. Amitabh Parekh died in 2013.
As per the information by Police, The PAL initially availed three short-term loans of INR 125 crore from Axis Bank which they made all the dues cleared to gain confidence of the bank. In 2011, the firm approached the bank again for working capital of INR 127.5 crore by submitting fake minutes of meeting of the firm’s board of directors, for getting his credit sanctioned. To which the bank sanctioned a letter of credit to PAL which was supposed to be used to buy raw material and equipment.
An Axis Bank spokesperson said that the exposure is a part of a lending arrangement which involved 22 banks and Axis Bank has filed an FIR with the EOW, after declaring the concerned exposure as a fraud. The spokesperson also assured to cooperate fully with the investigation authorities. Meanwhile, Police is also checking if there is any Axis Bank officer involved in the fraud or not.
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