Former employees of the State Bank of India (SBI) and others used letters of credit (L/Cs) to fraudulently channel funds from the bank to bogus companies, according to a judge in Delhi.

Manoj Jain thus passed an order to charge two senior SBI officials and nine others for allegedly using forged documents to cheat the bank's Industrial Finance department.

False documents

The alleged fraudsters used the forged documents to obtain the equivalent of around US$7 million in credit facilities.

The accused prepared forged bills and invoices and established bogus companies.

Using the credit facilities established at SBI, the accused are said to have caused L/Cs to be opened in favour of 20 bogus companies.

Alleged conspirators

Two senior SBI managers, Mani Kant Tula and Parveen Kumar Gupta, are accused of participating in the alleged frauds.

The remaining eight accused are either directors or employees of Hindustan Polychem Pvt Ltd.

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