CBI files chargesheet against former BCCI chief A C Muthiah for Rs 102-cr loss to bank

Apart from Muthiah, Farouk M Irani, the then managing director of the company, and 23 others are accused in the case. An official release from CBI said, “It was further alleged that the company had been showing inflated income as well as inflated assets over the years (since 1998) by showing fictitious income and non-existing assets. Most of the loans shown as granted by the said company to their clients were allegedly fictitious. Loans availed from the banks were allegedly diverted to the shell companies controlled by the then Managing Director to acquire shares of said Company only. It was also alleged that the NPAs (non Performing Assets) of said company were shown to be taken over by these shell companies through bogus agreements to avoid NPA provisions resulting in inflated profits, thereby causing loss of Rs.102.87 crore (approx.) to Syndicate Bank.”

The CBI statement said the investigation revealed that the accused persons along with seven satellite shell companies had been part of a conspiracy “with statutory and internal auditors” and “allegedly cheated the bank by submitting forged financial statements to obtain undue credit limits and siphoned the same away for extraneous uses whilst causing wrongful loss of Rs 102.87 crores (approx.) to the bank”.