CBI registers case against company for cheating banks of Rs 4,061.95 crores

A new scam emerged from Kanpur as the Central Bureau of Investigation (CBI) booked the directors of Frost International Ltd, on Tuesday for cheating 14 banks to the tune of Rs 4,061.95 crore. The directors of the company Uday Desai and Sujay Desai are still on the run. As per the news agency ANI, look out circulars have been issued against the 13 accused in the case.  

The action was taken on the basis of a complaint lodged by the Kanpur Zonal office of Bank of India. The bank had alleged that the directors of the company worked in the guise of undertaking merchanting trade without any genuine business. The officials claimed that they had not paid the pending amount to the lending banks of the consortium led by Bank of India.

On the other hand, defaulting the payment deadline, the directors, guarantors and unidentified others also submitted forged documents, diverted and siphoned off the bank's funds. The action of the company and its directors cheated the banks to the tune of over Rs 3,592.48 crore. Lookout notices were issued by the banks on January 18, 2019, as well. 

Read: PMLA Court declares Nirav Modi a fugitive economic offender 

MEA steps up probe in PNB scam 

With several bank scams have gripped the nation, the Ministry of External Affairs stepped up its efforts to arrest the fugitive businessman Mehul Choksi in connection with the Punjab Nation Bank scam.

In the start of the year, the MEA spokesperson Raveesh Kumar said that the government was putting all efforts on the ground to expedite Choksi's extradition - a key accused in the PNB scam. He also said that Nirav Modi's hearing is currently under progress in a London court. 

Read: India seeks fast-tracking of PNB scam scam accused Mehul Choksi's extradition from Antigua

India seeks quick expedition of Choksi 

"The case of Nirav Modi is under litigation and is heard at Westminster court in London. The call over video link hearing is scheduled today. We are putting in all our efforts in both cases (Choksi and Modi) on the ground to expedite the extradition," he said in an MEA weekly briefing. 

Read: PNB scam: CBI court refuses to cancel warrant against Mehul Choksi 

Court refuses to cancel warrant 

Earlier on December 13, a Mumbai special court refused to cancel a non-bailable warrant issued against Choksi. A week before that, the court had rejected a similar plea made by him seeking cancellation of a warrant issued in a case registered by the Enforcement Directorate under the Prevention of Money Laundering Act in the PNB scam.

In his plea before the CBI court, Choksi claimed that he could not travel to India because of his medical condition and also because he was facing a threat to his life. 

(With Agency Inputs)

Read: Now, Mehul Choksi blames Antigua typhoon for delay in submitting documents to challenge Bombay HC's order