Textile Company S. 150 crore bank fraud case against Kumar

New delhi date. 13

The CBI has arrested a leading textile company, S. Kumar Nationwide Ltd. Against Union Bank of India with Rs. An FIR has been registered for fraud of Rs 150 crore, officials said on Saturday. The CBI has taken action following a complaint that the bank had suffered losses due to false transactions of the company's promoters and directors.

Union Bank said that S.P. Kumar's MD Nitin Kasliwal, and the company's promoters and directors, including directors Vijay Govardhandas Kalantari, Anil Kumar Channa, Rajinder Krishna Garg and Jagdish Sanjeev Reddy, have defrauded the bank. The company was given various credit facilities from the bank, which became NPA in 2012 and these accounts were declared 'fraud' in 2020 after a forensic audit by KPMG.

The bank said in its complaint that the company had defrauded the bank by directing 5 per cent sales to select distributors, concealing revenue from customers and reselling the same customers at huge discounts. Three-quarters of forensic audits dealt with non-operating units. The bank alleges that the company's auditors have invested in the company.

S. Kumar and his directors paid the bank between Rs. It has erroneously shown a loss of Rs 120.5 crore and has taken advantage of the company. The FIR alleges that the directors of the company conspired with each other to defraud the bank.