Maharashtra: CBI books MLA Ratnakar Gutte in bank fraud of Rs 409 crore

The Central Bureau of Investigation CBI has filed an FIR against Maharashtra MLA and sugar baron Ratnakar Gutte and Gangakhed Sugar and Energy Limited for an alleged bank fraud of Rs 40926 crore officials said on FridayBesides the company and Gutte who won the Gangakhed seat as a Rashtriya Samaj Paksha candidate in the 2019 Maharashtra assembly elections the agency has booked his sons and other family members they saidAccording to the Central Bureau of Investigation Gutte is one of the directors of Gangakhed Sugar and Energy LimitedIt is alleged that Gangakhed Sugar and Energy Limited had availed various credit facilities to the tune of Rs 57716 crore in the form of a term loan working capital facility and other credit facilities from a consortium of banks led by UCO Bank between 2008 and 2015 the officials saidThe CBI recently searched the premises of Gutte and other accused at two places in Nagpur and three in Parbani they saidGuttes sons and other family members have also been booked by the agency on charges of criminal conspiracy and cheating under the Indian Penal Code and under provisions of the Prevention of Corruption ActThe Enforcement Directorate had filed a charge sheet against Gutte and Gangakhed Sugar and Energy Limited for alleged money laundering in December last yearThe bank has alleged in a complaint now part of the CBI FIR that the company has potentially diverted loan funds and availed excess drawing power in working capital by overstating net current assets in a stock statement This resulted in a cash crunch for the company caused a loss to the business and ultimately resulted in nonpayment of dues to banks making the account a nonperforming assetAlso Read Man shoots at woman at Indore station 21yearold trying to save her injuredThe company opened a Letter of Credit LC from UCO Bank and Union Bank of India in favour of suppliers for trading in sugar from 201314 to 201617 amounting to Rs 19717 crore the bank allegedGoods under LCs were rejected and shown in books as purchase returns valued at Rs 14387 crore it claimedIt appears that these transactions were not in the nature of normal business transactions for the purchase of sugar in trading and were used for availing finance from the Banking system by inappropriate use of LCs the bank allegedThe bank also redflagged several instances of financial irregularities against the companyIt is evident that the intention of the company and its promotersdirectors was malafide They took advantage of the banking system and misutilised various credit facilities provided by banks it allegedThe company allegedly jeopardised banks interest and the loans were utilised for other than sanctioned purposes it allegedThe company has defrauded and swindled public funds along with diversion of funds it allegedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever