India's Central Bureau of Investigation (CBI) is investigating a US$2 million property fraud that employed forged letters of credit (L/Cs) and other fraudulent documents.

The documents were allegedly used to raise a loan on which property was purchased.

Investigations

Amongst those reportedly under investigation by the CBI is Yogesh Barot, a director of an SYP Agro Foods Limited. It packaged dehydrated vegetables and has now closed down - but only after it secured a loan worth around US$2 million from the Canara Bank.

Subsequently, it turned out that the loan was secured on the basis of fake property documents in a scam that allegedly also involves three bank officers.

Forged documents

Local media reports that the company executives had submitted to the bank a host of forged documents - including L/Cs and at least one bank guarantee as well as apparent proof of exports and raw material purchases.

The fraud reportedly came to light when the bank officials tried to recover the loan after the company had defaulted on loan repayments.

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