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Documentary Credit World

Documentary Credit World (DCW) - March 2024 Vol. 28 No. 3 section - Scam Survey

India’s CBI Initiates Probe of Swastic Coppers

India's Central Bureau of Investigation (CBI) is targeting directors and persons connected with Swastic Coppers Pvt Ltd for alleged involvement in an INR 48.06 crore (USD 5.76 million) fraud committed against Union Bank of India.

According to published reports based on information disclosed by CBI, individuals accused of criminal conspiracy and named in a CBI First Information Report (FIR) include company directors/ guarantors Sandeep Jain and Indra Jain, ex-director/guarantor  Neelam Jain, Guarantor Sharad Kumar Bakliwal and other unidentified public servants and private persons. After the FIR filing, CBI officials executed searches of five locations linked to the business and the accused.

"The company allegedly availed cash credit limit by submitting false and inflated documents. It has been further alleged that accused defaulted on inland LCs (letter of credit), BGs (bank guarantee) and diverted the bank funds through transactions with related parties," according to a CBI statement.

(Source: The Indian Express)