The LOC has been issued to prevent the accused from leaving the country and evading arrest by moving to some other country.
The Central Bureau of Investigation (CBI) on Tuesday booked Mumbai-based M/s Frost International Ltd and its directors Uday Desai and Sujay Desai for cheating 14 banks to the tune of Rs 3,592 crore. A Look Out Circular (LOC) has also been issued against the 14 accused, including the Directors and Guarantors of the company.
The LOC has been issued to prevent the accused from leaving the country and evading arrest by moving to some other country. The LOC has been preceded on the request of Bank of India (BoI) and the Indian Overseas Bank (IOB).
The move comes after a complaint was lodged by Kanpur Zonal office of Bank of India over suspected fraud. In its complaint, the BOI alleged that directors of the company had worked under the guise of merchanting trade without genuine business.
In its complaint, the BOI further added that the company’s directors, guarantors, and other unidentified people submitted forged documents to divert and siphon off the bank’s funds.
According to reports, this is being considered as one of the biggest bank defaults since big-time debtors like Nirav Modi and Mehul Choksi fled the nation. Apart from Bank of India and Indian Overseas Bank, the other banks are Andhra Bank, United Bank of India, Allahabad Bank, Oriental Bank of Commerce, Punjab National Bank, UCO Bank, Vijaya Bank, Canara Bank, Bank of Baroda, Central Bank of India, Union Bank of India, and Syndicate Bank.
Frost International Limited’s registered office is located at 709, Wing, One BKC, G-Block, Bandra Kurla Complex, Bandra(East), Mumbai. While, its corporate office is located at 402, Kalpana Plaza, 24/147-B, Birhana Road, Kanpur.
Frost International is recognised as an export trading house by the Ministry of Commerce and Industry, Government of India. It focuses on a number of commodities such as agro commodities, minerals, metals, bullion, plastics, polymers and precious metals, etc.