Benami crackdown: Sterling Group in trouble, CBI lodges FIR for cheating Andhra Bank, others of Rs 5,383 crore

By: |
Published: October 29, 2017 12:58:12 PM

The CBI has alleged that the group’s flagship company, Sterling Biotech, in connivance with an Andhra Bank official and the in-house chartered accountant, cheated the bank of Rs 5,383 crore by falsifying company records.

In yet another setback for the Sterling Group, a fresh case against the company has been registered by Central Bureau of Investigation (CBI). (PTI)

In yet another setback for the Sterling Group, a fresh case against the company has been registered by Central Bureau of Investigation (CBI). The security agency has accused the company of allegedly cheating a consortium of banks led by Andhra Bank of over Rs 5,000 crore, reported the Indian Express. The CBI has alleged that the group’s flagship company, Sterling Biotech, in connivance with an Andhra Bank official and the in-house chartered accountant, cheated the bank of Rs 5,383 crore by falsifying company records. It further diverted the money through benami companies for “personal purposes” by the owners of the company. The loan has been declared as a non-performing asset.

Regarding this, the CBI has lodged a fresh FIR on October 25. The FIR says, “In order to avail maximum loan… the directors of M/S SBL connived with the in-house CA and in active criminal conspiracy with others falsified the material records of the company inter alia related to production, turnover and investments in capital assets using various India-based entities and entities situated abroad. On the basis of these false and fabricated documents, manipulated balance sheets were prepared to induce the banks to sanction higher amounts of loans which were later diverted for personal purposes.”

As per the report, the FIR was registered under various sections of the Indian Penal Code and the Prevention of Corruption Act. It has the names of Sterling Biotech directors that included Chetan Sandesara, Rajbhushan Dixit, Nitin Sandesara, Dipti Sandesara, Vilas Joshi, chartered accountant Hemant Hathi and then director of Andhra Bank, Anup Garg, among the accused.

The company recently hit the headlines over a diary. It was alleged that the diary had details of payments made to government officials, IRS and IPS officers, and people associated with top politicians. In August, the CBI had registered an FIR and arrested three Income Tax officials whose names allegedly figured in the diary.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1UP school teacher reportedly working in 25 schools simultaneously arrested
2Indian courts adopting technology in forward-thinking manner: Niti Aayog CEO Amitabh Kant
3Priyanka Gandhi demands release of Congress’ UP chief, accuses UP govt of repression