CBI files FIR against Kanishk Gold for duping SBI, 13 other banks of Rs 824 crore


New Delhi, Mar 21 (PTI): The CBI has registered a case of alleged loan fraud of Rs 824.15 crore committed by Chennai-based Kanishk Gold Pvt Ltd on a consortium of 14 banks led by the State Bank of India and carried out searches on Wednesday, officials said.

The case has been registered by the Central Bureau of Investigation (CBI) on a complaint from the SBI on behalf of the 14-bank consortium, they said.

The CBI carried out searches at the official and residential premises of promoters of Kanishk Gold Pvt Ltd as it launched probe in the Rs 824-crore loan fraud case, the officials said.

The company engaged in manufacturing gold jewellery which was marketed under the brand name ‘Krizz’. It sold through distributors till 2014 but changed business model to B2B (business-to-business) in 2015 supplying to large retail jewellers, the SBI said in the complaint to the CBI.

The loan accounts of the company were taken over by the SBI from the ICICI in 2008. Its banking arrangement was converted into a multiple banking arrangement in March 2011, it said.

The SBI alleged that while the “fraud” is to the tune of Rs 824.15 crore, the security available with the it to cover the “loss” is only around Rs 156.65 crore.

The CBI officials said they have received the complaint and were in touch with the bank because of certain loopholes in the complaint which were to be rectified by the bank.

The bank has alleged that the company had “misrepresented and falsified” the records and financial statements of the company to show a “rosy picture” since 2009 to avail credit facilities from it.

Kanishk Gold Pvt Ltd and its directors allegedly diverted the funds detrimental to the rights and interests of the bank, it said.

The SBI has requested the agency to register a case against Kanishk Gold Pvt Ltd, its promoter director Bhoopesh Kumar Jain and others.

The company’s account was declared fraud and non-performing asset (NPA) in 2017-18 by various lending banks, it alleged.

 

  

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Comment on this article

  • SAHIL, Mangaluru

    Thu, Mar 22 2018

    If NPA Arises day by day similar way all the bank statutory reserve and retained earnings for the Previous Period will clean up and remain big question mark on Public hard earned savings in bank ?

    we all selling IT Brain storm to USA how foolish we don't have our own proper IT Control on lending practice. still time is not far require complete revolution in banking lending practices at the earliest.
    Otherwise?

    DisAgree [1] Agree [5] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Thu, Mar 22 2018

    Better to review all gold business centres which are the major culprits in defrauding the banks which is public money.

    DisAgree Agree [3] Reply Report Abuse

  • Declan, Mumbai

    Thu, Mar 22 2018

    Now people are beginning to understand what Modi really meant when he launched the 'Swachh Bharat' campaign.
    One by one all Indian banks could get completely cleaned. Already 10 PSU banks have been placed under the PCA framework and more could be included. Further, PCA framework does not guarantee that the bank will be able to recover their losses.

    Guys, a small piece of advice, do not keep too much money in the banks. If one has more money then investments in property and gold are safe bets. Another option is to become an NRI if one is not eligible or does not have the means to migrate. However, if one does not have much money then pray and ensure to get rid of the BJP by voting for the Congress party in the centre and the state in every future election.

    There was corruption during the Congress rule though much of it was exaggerated. However, at least our savings were safe. With BJP none of us are safe. Yeah, BJPians go ahead accuse us of fear mongering. BJPians always have some hollow defense/accusation ready to cover up their failures.

    DisAgree [4] Agree [8] Reply Report Abuse

  • Rathan, Mangalore

    Thu, Mar 22 2018

    Declan
    All bank c scams reported r pertaining to the period after 2004 when UPA took over
    Now MODI wants to clean the system /mess created by UPA .there is nothing to fear about anyone's money in banks as long as it is not benami /I'll gotted wealth
    Don't spread rumours ."rumours mongers r nations enemy "

    DisAgree [9] Agree [2] Reply Report Abuse

  • Declan, Mumbai

    Thu, Mar 22 2018

    BJP's own ally Bihar CM JDU's Nitish Kumar has already clarified who the R-umour S-preading S-ociety are. No need for further clarfication.

    DisAgree [1] Agree [2] Reply Report Abuse

  • geoffrey, hat hill

    Thu, Mar 22 2018

    As usual after making sure he's safe in a far away destination, the scam has been revealed.

    DisAgree [1] Agree [7] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Mar 22 2018

    Instead of cleaning Ganga they are cleaning India's Banks ...

    DisAgree [1] Agree [10] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Thu, Mar 22 2018

    The patriotism for the country of our freedom fighters was such that the young Bhagat Singh, it is said, had kissed his noose before execution. Our forefathers dreamt that India would be flowing with the rivers of milk and we would be having mountains of food grains. But, later, these cheaters, tricksters, fraudsters, swindlers and dishonest people have reduced our country to the level that we are today. Our politicians and business people are so involved, we can see the still water that runs deep, and it is a Herculean task for the government to correct the harm that is done

    DisAgree [2] Agree [2] Reply Report Abuse

  • Charan Amin, Mlore/Dubai

    Thu, Mar 22 2018

    Rightly said.

    DisAgree [2] Agree [1] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Mar 22 2018

    All our Banks in India are Bleeding ...

    DisAgree [2] Agree [5] Reply Report Abuse

  • vijay, uae

    Thu, Mar 22 2018

    WHERE IS THE CHOWKIDAAR. is he under ground????? BHAKTON PLZ mail me if u spot ant where on earth. may be he searching for his lost achhe din.

    DisAgree Agree [4] Reply Report Abuse

  • ABD, LOS ANGELES

    Wed, Mar 21 2018

    UNDER MODI RULE ALL CORRUPTS ARE GETTING EXPOSED UNLIKE PAST ITALIAN GOVT

    DisAgree [12] Agree [2] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Mar 22 2018

    Can your Modi bring back Lalit, Nirav & Mehul Chokshi ...

    DisAgree [1] Agree [9] Reply Report Abuse


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Title: CBI files FIR against Kanishk Gold for duping SBI, 13 other banks of Rs 824 crore



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