CBI Fees Shakti Bhog Meals In Rs 3,269 Crore Alleged Financial institution Fraud Case

New Delhi:

The CBI has charged Delhi-based Shakti Bhog Meals Restricted for an alleged fraud of Rs 3,269 crore on a consortium of 10 banks led by way of the State Financial institution of India (SBI), officers mentioned on Friday.

On a grievance from the SBI, the company has charged the managing director of the corporate, Kewal Krishan Kumar, and different administrators Siddhrath Kumar and Sunanda Kumar, they added.

In line with the SBI grievance, the administrators allegedly falsified accounts and cast paperwork to siphon off public budget.

The 24-year-old corporate, which is into production and promoting wheat, flour, rice, biscuits, cookies and so forth., had grown organically because it ventured into food-related diversification over a decade with a turnover expansion of Rs 1,411 crore in 2008 to Rs 6,000 crore in 2014, the financial institution mentioned.

The expansion got here to an abrupt halt in 2015 with the account changing into a Non-Appearing Asset (NPA) and it was once in the long run declared a fraud in 2019.

The account grew to become an NPA as a result of stock losses owing to a steep fall in paddy costs, underutilisation of capital expenditure within the rice and paddy segments and a prolong within the tie-up budget to tide over losses, an investigation file by way of the financial institution on personnel responsibility had famous in 2017.

The forensic audit accomplished by way of the bankers identified that the corporate, in its account books of monetary 12 months 2015-16, confirmed that its stock price over Rs 3,000 crore were given broken because of pests and was once bought at considerably low costs.

This was once contradictory to the inventory and receivable audit file, which confirmed that the corporate had a inventory of over Rs 3,500 crore in September 2015, its warehouses had been absolutely stocked and not one of the stock was once out of date or sluggish transferring, the financial institution alleged in its grievance.

The file additionally mentioned the corporate had an insurance coverage for cover in opposition to fire, earthquake and different perils however no claims had been made about inventory getting broken as a result of pests.

The accounts additionally didn’t display any receivables owing to a sale of broken shares at low costs, it mentioned.

The file additionally identified round-tripping of budget and suspicious bills made by way of the corporate, but even so fudging of account books, the officers mentioned.