CBI Launches FIR Against Assam-Based Firm and Directors in Rs 65.73 Crore Loan Fraud

Editor Editor
Friday, September 08, 2023
CBI Launches FIR Against Assam-Based Firm and Directors in Rs 65.73 Crore Loan Fraud
Financial Intrigue Unveiled: CBI Initiates FIR Against Brahmaputra TMT Bars Pvt. Ltd. and Its Directors
In a momentous development that has sent shockwaves through the financial world, the Central Bureau of Investigation (CBI) has initiated a formal First Information Report (FIR) against an Assam-based private enterprise, Brahmaputra TMT Bars Pvt. Ltd., and its two directors, Santosh Jaiswal and Padma Nath Deka. The FIR unearths a complex and meticulously orchestrated loan fraud scheme, amounting to a staggering Rs 65.73 crore.

The intricate web of deception began to take shape in March 2006, when the directors, Mr. Jaiswal and Mr. Deka, secured a Term Loan facility of Rs 9 crore and Fund-Based Working Capital of Rs 6 crore from the State Bank of India (SBI). These funds were ostensibly meant to support the establishment of a Billets Plant, but the path that followed soon revealed a pattern of calculated financial manipulation.

As the FIR reveals, in March 2009, an additional Fresh Term Loan of Rs 9.71 crore was extended to Brahmaputra TMT Bars Pvt. Ltd. Simultaneously, there was an expansion of the Cash Credit Limit from a modest Rs 6.00 crore to a significant Rs 11.65 crore. The Non-Fund-Based Limit for Letter of Credit also saw a substantial increase, surging from Rs 3.50 crore to Rs 6.50 crore.

The alleged fraud, however, did not stop there. In November 2009, the Cash Credit Limit experienced another substantial boost, skyrocketing from Rs 11.65 crore to a jaw-dropping Rs 24 crore. Simultaneously, the Letter of Credit Limit surged from Rs 6.50 crore to an astounding Rs 12.50 crore. This pattern of continuous escalation in credit limits raised eyebrows and prompted further scrutiny.

As 2010 dawned, another twist in this financial saga unfolded. In April 2010, Brahmaputra TMT Bars Pvt. Ltd. managed to secure an undisclosed Term Loan amount. Remarkably, the Cash Credit Limit remained unchanged at Rs 24 crore, while the Non-Fund-Based Limit witnessed yet another substantial increase, growing from Rs 12.50 crore to an impressive Rs 18 crore.

The climax of this intricate financial web took shape in November 2010 when the Borrower Company embarked on a formidable 10 MW Captive Power Project (CPP). This venture secured a Term Loan Limit of a substantial Rs 20 crore, under a multifaceted Multi-Banking Arrangement (MBA). This arrangement included significant participation from other financial institutions, notably Allahabad Bank and the North Eastern Development Finance Corporation (NEDFI).

The FIR, while not explicitly stating fraudulent intent, paints a vivid picture of a complex and interwoven series of financial transactions that have raised serious questions. The CBI's intervention in this case signifies a resolute commitment to uncovering the truth behind these allegations of financial irregularities.

As the investigation unfolds, the financial world watches with bated breath, eager to understand the full extent of this alleged loan fraud and the consequences it may hold for those involved.