CBI files case against UK-based company in $10 million EXIM Bank fraud

The Central Bureau of Investigation (CBI) has registered a case against a UK-based company, its former directors, and associates in connection with an alleged $10 million US fraud involving India EXIM Bank. According to a report by Press Trust of India, CBI officials have confirmed the action.

The case has been filed based on a complaint lodged by G. Selvakumar, Assistant General Manager of India EXIM Bank. The bank alleges that it has been defrauded, resulting in a loss of $10 million US to the bank. This amount is approximately ₹63 crore in Indian Rupees. This sum was outstanding when the loan account was classified as a Non-Performing Asset (NPA) in September 2014.

In the First Information Report (FIR) registered by the CBI, the UK-based company 'Hanszer Biotech (Erith) Limited' has been named as an accused, a company which has now been dissolved. Additionally, the company's former directors, guarantors, Navi Infrastructure Engineering Private Limited, Hum Synthesis Private Limited, and certain unnamed government officials have also been named as accused.

According to the allegations, Hanszer Biotech had entered into an agreement with Navi Infrastructure to supply machinery for a recycling project in the UK. As stated in the loan application, the total cost of this project was $15.90 million US. Out of this, $5.90 million US was proposed to be invested by the promoters, while the remaining amount was proposed to be taken as a loan from EXIM Bank.

According to a report by India Today, the bank's Executive Committee in Mumbai had sanctioned a $10 million US term loan in 2012. However, the FIR alleges that the machinery was never supplied. The advance amount received for the purchase of machinery was diverted as a loan to related parties, including Hum Synthesis.

Press Trust of India, citing the FIR, stated that the entire $10 million US loan amount was illegally siphoned off. The account was declared a Non-Performing Asset in 2014 and was subsequently classified as fraud or cheating under the guidelines of the Reserve Bank of India (RBI).