CBI files case against Indian Technometal Company for alleged fraud of Rs 555.65 cr

The CBI has filed a case against Indian Technometal Company Ltd and its directors for alleged fraud of Rs 555.65 crore to a consortium of banks led by erstwhile Corporation Bank, officials said Friday.

The action followed a complaint from Union Bank of India (erstwhile Corporation Bank) alleging that the private company through its directors in conspiracy with others has defrauded the consortium by misrepresentations, concealment of facts and submitting false documents and information to avail credit facilities.

The default on payments caused a loss to the tune of Rs 555.65 crore to the consortium which also included State Bank of Hyderabad (now State Bank of India), Punjab National Bank, Punjab & Sindh Bank, UCO Bank, Syndicate Bank, Central Bank of India, Karur Vysya Bank and JM Financial ARC, they said.


"Searches at the premises of the accused/firm were conducted at Kangra (Himachal Pradesh), which led to the recovery of incriminating documents," CBI spokesperson RC Joshi said.