New Delhi, Dec 31 (UNI) The CBI has filed a chargesheet against the former Chairman and Managing Director and the former Executive Director of the Global Trust Bank (GTB) and six others, including the General Manager (Finance) of Balaji Group of Industries, for duping the bank of Rs 47 crore.
The chargesheet was filed on December 28 in the Special Court for CBI cases, Mumbai, against GTB ex-CMD Ramesh Gelli and ex-ED Sridhar Subasri, besides Balaji's GM (Finance) N Srikanth, a CBI spokesperson here said today.
The Balaji Group used to borrow funds from the GTB since 1996 but its account with the bank became a Non-Performing Asset in 1999.
Despite that, the bank continued to sanction loans to the propped up companies of the group.
Even though the propped up companies were not authorised to export goods, consignments were made through M/s Cargil India.
Funds were obtained from two sources against the same export order. Advance payments were received from foreign buyers against bank guarantees and from the bank against letters of credit, the spokesperson added.
By using the funds from one source for export and from the second source for evergreening of the Balaji group of accounts, the bank officials camouflaged the Non-Performing Assets and even went on to declare dividends for personal gains.