Image Source : FILE PHOTO/PTI The CBI has booked MD and administrators of Shakti Bhog Foods.
Delhi-based Shakti Bhog Foods Limited was booked by the Central Bureau of Investigation (CBI) on Friday for an alleged fraud of Rs 3,269 crore. The firm, which sells packaged wheat flour, cookies and different objects, has been accused of duping a consortium of 10 banks led by the State Bank of India (SBI).
The CBI has booked Kewal Krishan Kumar, MD of the corporate, and different administrators Siddhrath Kumar and Sunanda Kumar, on a grievance lodged by the SBI, officers stated.
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According to the SBI grievance, the administrators allegedly falsified accounts and cast paperwork to siphon off public funds.
The 24-year-old firm had grown organically because it ventured into food-related diversification over a decade with a turnover development of Rs 1,411 crore in 2008 to Rs 6,000 crore in 2014, the financial institution stated.
The development got here to an abrupt halt in 2015 with the account turning right into a Non-Performing Asset (NPA) and it was finally declared a fraud in 2019.
The account turned an NPA on account of stock losses owing to a steep fall in paddy costs, underutilisation of capital expenditure within the rice and paddy segments and a delay within the tie-up funds to tide over losses, an investigation report by the financial institution on employees accountability had famous in 2017.
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The forensic audit carried out by the bankers identified that the corporate, in its account books of monetary 12 months 2015-16, confirmed that its stock value over Rs 3,000 crore bought broken because of pests and was bought at considerably low costs.
This was contradictory to the inventory and receivable audit report, which confirmed that the corporate had a inventory of over Rs 3,500 crore in September 2015, its warehouses had been totally stocked and not one of the stock was out of date or sluggish transferring, the financial institution alleged in its grievance.
The report additionally stated the corporate had an insurance coverage coverage for cover in opposition to hearth, earthquake and different perils however no claims had been made about inventory getting broken due to pests.
The accounts additionally didn’t present any receivables owing to a sale of broken shares at low costs, it stated.
The report additionally identified round-tripping of funds and suspicious funds made by the corporate, in addition to fudging of account books, the officers stated.
(With Inputs From Agencies)
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