The Hindu : New Delhi News : Charges framed against nine for duping bank

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Monday, Dec 25, 2006
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New Delhi

Charges framed against nine for duping bank

Conspiracy hatched in connivance of directors of three companies

NEW DELHI: Finding prima facie evidence, a Delhi court has framed charges against nine persons, accused of cheating J&K Bank of Rs6.6 crore, including the interest, by allegedly floating fictitious companies.

``You all in pursuance of criminal conspiracy, cheated by inducing J&K Bank for granting loan for the purchase of machinery from supplier companies, which was recirculated to the accounts of the main company without purchasing any machinery,'' said Additional Chief Metropolitan Magistrate Kamini Lau on Saturday.

The court, while framing the charges under Section 420 (cheating) of the IPC, took into consideration that the three companies, which were formed only to facilitate the act, had reportedly made fake invoices that were produced in the bank for sanctioning a loan of Rs five crore.

The court also charged the accused under Section 120B (criminal conspiracy)of IPC, contending that all the nine accused had entered into a conspiracy to do illegal act by illegal means with an intention to cheat J&K Bank.

The prosecution had alleged that the Shamkeen Group of Companies (SGC), being managed by the prime accused Amit Chaturvedi, which comprised four companies had passed a board resolution in November 2001 for obtaining the loan amount.

They hatched a conspiracy in connivance of the directors and partners of three other companies for procuring the fake invoices, which were later submitted to the bank for approval of the loan, it claimed.- PTI

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