New Delhi, Sep 19: The CBI has filed a First Information Report (FIR) against Mandhana Industries, based in Mumbai (now known as GB Global Ltd), on charges of allegedly deceiving and defrauding a consortium led by the Bank of Baroda of Rs 975.08 crore, officials stated on Tuesday.
The CBI investigation is the result of a bank complaint alleging that the consortium was cheated by the former managing director Purushottam Chhaganlal Mandhana, the former executive director Manish Biharilal Mandhana and a few others in a close-knit criminal conspiracy to funnel money.
The 39-year-old business owned by the Mandhana family began utilising credit facilities from the Bank of Baroda in 2008; however, on December 31, 2016, the account was classified as a non-performing asset.
A forensic investigation that the banks requested revealed a number of irregularities, including the misappropriation of money to pay off debts between corporations, the failure to use a Trust and Retention Account (TRA) to transfer Rs 420.39 crore between July 2016 and September 30, 2017 and fictitious transactions.
The audit also revealed money diversion and circular trading, as well as fraudulent transactions and dealings with linked parties.