A 31-year-old man has been arrested for allegedly embezzling funds to the tune of 300 crore rupees in the form of loans and credit facilities from various banks and financial institutions, police said on Friday.
Vaibhav Sharma, chief financial officer (CFO) of a Gurgaon-based company active in the car dealership, was arrested on Thursday in a 2018 case filed against him and the other directors of the company for embezzlement. banking, they said.
Action was taken by the Economic Offenses Wing (EOW) of the Delhi Police Force after an authorized representative of one of the banks alleged that the directors of the alleged company – Rashpal Singh Todd and Mandhir Singh Todd and his CFO Vaibhav Sharma – duped their bank to the tune of Rs 102 crore, police said.
In view of sufficient prosecution evidence in the file, the defendants Rashpal Singh Todd and Mandhir Singh Todd have already been arrested in this case and charged, they added.
According to the complainant bank, the defendants approached their branch in Bahadurshah Zafar Marg, Delhi, for financial assistance in 2007. The company allegedly engaged in the Audi car dealership had been granted a cash credit facility. , commercial advances, etc. for demonstration cars from the bank since 2007. It had also benefited from a term loan, a cash credit facility and a bank guarantee since 2013, police said.
Under the terms and conditions between the bank and the alleged company, the defendants were to provide details of the use of the funds as well as details of the stock that was mortgaged with the bank. Trade advances used by the alleged company had to be returned within 90 days. Until March 2018, the alleged company was operating under the terms and conditions, but later defaulted. In June 2018, during an inspection of the alleged company’s showroom, only 29 cars were found against 200 cars, said OP Mishra, Joint Commissioner of Police (EOW).
“During the investigation, it further emerged that the defendants argued that their company had received financial assistance of Rs 130 crore from other financial institutions, including the complainant bank. Vaibhav Sharma had submitted a fake bank statement from JK Bank for the period from June 1, 2018 to June 19, 2018, when the alleged company used the OD of Rs 11.64 crore. During the investigation of the bank records, he was found that the alleged company had in fact profited from the OD of Rs 49.51 crore, ”he said.
Officials at the alleged company embezzled the amount to the tune of around Rs 102 crore and accused Sharma of telling the complaining bank that the company had suffered losses over the past four years as the balance sheet of the company was showing profits, Mishra said.
Upon further investigation, it emerged that the alleged company had duped other banks and financial institutions to the tune of 300 crore rupees and obtained the credit facilities, business advances and loans for demo cars. , he said, adding that the cars were sold without NOCs and the loan amount was embezzled.