CBI Registers FIR Over Alleged Rs 63 Crore Exim Bank Loan Fraud

The Central Bureau of Investigation (CBI) has registered a case over an alleged USD 10 million (approximately Rs 63 crore) loan fraud involving India Exim Bank, a UK-based company and its former directors, officials said on Wednesday.

The FIR was registered following a complaint by G Selva Kumar, Assistant General Manager at India Exim Bank, alleging that the bank suffered a wrongful loss of USD 10 million. The amount represents the outstanding loan as of September 29, 2014, when the account was classified as a Non-Performing Asset (NPA).

According to the complaint, Hanjer Biotech (Erith) Ltd, a UK-based company that has since been dissolved, approached the bank for financing a recycling project in the United Kingdom. The project was estimated to cost USD 15.90 million, with the promoters expected to contribute USD 5.90 million and the remaining USD 10 million to be funded through an Exim Bank loan.

The bank's executive committee in Mumbai approved the USD 10 million term loan in 2012. Hanjer Biotech had entered into an agreement with Navi Infrastructure Engineering Pvt Ltd (NIEPL) for supplying machinery required for the project.

However, the CBI complaint alleges that the machinery was never supplied and that advances received for its purchase were diverted to extend loans to related parties, including Hume Synthesis Pvt Ltd. The entire loan amount was allegedly siphoned off instead of being utilised for the intended project.

The account was classified as an NPA in 2014 and subsequently declared fraudulent under Reserve Bank of India (RBI) guidelines.

The FIR names Hanjer Biotech, its former directors and guarantors, Navi Infrastructure Engineering, Hume Synthesis and unknown public servants as accused.

The case raises concerns over financial monitoring, verification of overseas projects and the utilisation of bank loans. The CBI will investigate the alleged diversion of funds and the possible involvement of the accused.

The allegations are yet to be established through investigation.