The company had taken credit facilities from consortium members during 2008-13, CBI officials said.
The CBI has registered a case against Indian Technomach Co Ltd, its promoter and CMD Rakesh Kumar Sharma, and others for allegedly defrauding a consortium of 16 banks led by Bank of India to the tune of over Rs 1,528 crore, officials said on Wednesday.
The company, which has its unit in Himachal Pradesh and is involved in manufacturing of ferrous and non-ferrous metals, had taken credit facilities from consortium members during 2008-13 but the account has turned into a non performing asset because of alleged defaults on payments, they said.
Following the FIR against Sharma, the company, another director and guarantor Vinay Kumar Sharma, two Kolkata-based corporate guarantors, Gurupath Merchandise Ltd and Thunder Traders Ltd, the CBI on Wednesday conducted searches at various premises of the accused, including those in Kangra and Paonta Sahib in Himachal Pradesh.
The consortium of banks allegedly cheated by the company include Bank of India, Union Bank of India, Andhra Bank, Punjab and Sind Bank, Indian Overseas Bank, State Bank of Hyderabad, Central Bank of India, Corporation Bank, HDFC Bank Limited, Oriental Bank of Commerce, Saraswat Co-operative Bank, State Bank of Patiala, UCO Bank, Allahabad Bank, Standard Chartered Bank and DBS.
"The accused had allegedly conspired with an intention to defraud the banks through said acts and by diverting the funds from the loan account and thus caused loss of Rs 1528.05 crore (approx) to the said consortium of banks. The account was classified as NPA in the books of accounts of Bank of India w.e.f. March 31, 2014 due to overdue status of the account in line with IRAC guidelines," CBI Spokesperson RC Joshi said.
The account was red-flagged by the Bank of India, as advised by RBI, in May, 2015 and was declared fraud in February, 2016, he said.