Another Bank Scam: Three Directors Of A Mumbai Company Held For Duping Axis Bank Of Rs 4000 Crore

Adding to the list of bank scams, the economic offence wing of Mumbai Police has arrested three directors of a private firm – Parekh Alluminex Ltd (PAL) – in a bank fraud case of Rs 4,000 crore.

After a complaint filed by Axis Bank against the firm for cheating of Rs 250 crore, the police nabbed Bhawarlal Bhandari, Premal Goragandhi and Kamlesh Kanungo on Friday.

Along with Axis Bank, there are some 19 other banks that have credited money to the firm. The firm is already facing CBI probe following a complaint by public sector lenders, including SBI and Indian Overseas Bank for diverting fund to real estate developers.

The arrested directors are charged with floating fake invoices and manipulated bills through bogus companies to commit the fraud at the bank’s main branch, Fort, using letters of credit, reported The Times of India.

Axis Bank’s complaint against Parekh Alluminex Ltd (PAL) also mentions directors Amitabh Parekh (died in 2013), Rajendra Gothi, Devanshu Desai, Kiran Parikh.

Vikram Mordani, who was named in the first information report (FIR), has not been chargesheeted in the case.

According to The Times of India, the police said PAL initially availed three short-term loans of Rs 125 crore from Axis Bank, which were repaid to “gain confidence”.

In 2011, PAL, led by Parekh, approached the private bank for working capital of Rs 127.5 crore. Parekh submitted minutes of a meeting of the firm’s board of directors, though no such meeting was held. He did this solely for inducing the bank to sanction credit.

The bank sanctioned a letter of credit to PAL, which was meant to be used to buy raw material and equipment.

“Our exposure is part of a lending arrangement involving around 22 banks and the bank has filed an FIR with the EOW, post declaring the concerned exposure as a fraud. We are fully cooperating with the investigating authorities,” said an Axis Bank spokesperson.

The police are probing the matter and are checking the involvement of some Axis Bank officials in this fraud.