Coir firms, bank manager booked for weaving Rs 6.35 crore fraud

CBI FIR cited 37 people, including the then branch manager P Dhanraj, an auditor identified as RM Subramanian and all the 35 borrowers, as suspects in the bank fraud case.

The bank’s internal inquiry found that all the borrowers had availed loans by producing bogus financial statements prepared by the said auditor, who acted as a middleman in securing the loans using his three firms. The loan amount varied from Rs 14 lakh to Rs 20 lakh.

While processing the proposals, the particular bank branch had projected them as viable units as per pre-sanction visit reports. Subsequently, it was found that the units didn’t exist. Borrowers were not members of Coir Industry Association and most of them were related to each other. The borrowers had diverted the fund and used the loan amount for personal gains, the CBI said quoting the complaint from the bank.

After going through the documents submitted by the borrowers, Syndicate Bank in its complaint also noted that it was found that several irregularities were committed by borrowers. They had submitted false documents and bogus address proofs and also added that they had not purchased any machinery or raw materials using the borrowed amount. No unit was available in the address given by the borrowers while applying for the loans. The bank was made to believe that the borrowers were running coir firms or going to start a firm and availed the loan. Auditor Subramanian has prepared all the bogus financial statements for all the borrowers and hatched a criminal conspiracy, joining hands with the borrowers to cause wrongful loss to the bank, the CBI said.