Export firm’s partners given jail terms for duping bank

Two partners of an export firm have been sentenced to two years in jail by a Delhi court for duping a bank of Rs 9 lakh over 19 years ago by availing credit facility from it under an export promotion scheme and then pocketing the loan.

Two partners of an export firm have been sentenced to two years in jail by a Delhi court for duping a bank of Rs 9 lakh over 19 years ago by availing credit facility from it under an export promotion scheme and then pocketing the loan.

While sentencing Rajesh Gupta and Vinay Gupta of M/s Bharti Exports for duping the Janakpuri branch of Andhra Bank by applying for “packing credit limit” and availing loans under it,Special CBI Judge L K Gaur also imposed a fine of Rs 1.5 lakh on each of them.

“It is clear from the facts of the case that applying for packing credit limit was nothing but a ruse to let the bank lend M/s Bharti Exports the money which it did not intend to pay back,” the court said,while also slapping a fine of Rs 1,000 on the firm.

In its FIR,the CBI had alleged that the duo had applied for “Packing Credit Limit” for export of garments on the basis of letter of credit even when Guptas were earlier engaged in supply of electrical items and had no infrastructure,experience or invested capital to export ready made garments.

The limit was sanctioned and on their request four pay orders amounting to Rs 9 lakh were issued in the names of M/s Fashion Flame,M/s Sultan Embroidery and M/s Classic Enterprise,a fly by night firm. The four firms were to purportedly work for them in the garment export.

The amounts,credited to the accounts of Fashion Flame and Sultan Embroidery,were taken back by the convicts through bearer’s cheques from the two firms.

A fourth pay order,the court noted,was credited in the account of Classic Enterprises,a “fly by night” firm which was created only to get the pay order encashed and not to do any business.

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The court also noted that the convicts had availed the loan on concessional rates under a scheme for promotion of exports.

“Bharti export had no previous experience in export of garments,it had no capability or infrastructure to manufacture goods,it did not have time to make the export of garments.

“Its subsequent conduct of not using the money for manufacture of goods for export but siphoning off that money by taking the same money in cash from M/s Fashion Flame,Classic Enterprises and M/s Sultan Embroidery as against the pay orders in their favour would show in no uncertain terms that accused M/s Bharti Exports and its partners accused Vinay Gupta and Rajesh Gupta from the very beginning had dishonest intention to cheat the bank,” the court observed.

Satnam Singh,the then chief manager of Andhra Bank,was also named as an accused in the case as he had granted the credit limit. The proceedings against him,however,had stood abated in 2010 after his death.