CBI arrests 3 directors of private company for fraud

New Delhi, Jul 20:  The Central Bureau of Investigation has arrested three directors of a private company based at Ludhiana and two other bank officials in connection with a case related to alleged bank fraud. "Rajesh Kumar Maheshwari, Ajay Kumar Maheshwari and Sanjeev Kumar Maheshwari, all directors of RS Fasteners (India) Pvt Ltd and two bank officials-- DK Sethi, then Chief Manager of PNB's Overlock Road Branch, Ludhiana and former officer SK Sinha were arrested in an on going investigation of a case related to alleged bank fraud," CBI said here today. The probe Agency said it has registered a case under section 120B r/w section 420, 467, 468, 471 of IPC and Section 13(2) r/w 13(1)(d) of PC Act and substantive offences against three directors and its company, a CA and others on the allegations of defrauding the bank to the tune of around Rs 56 cr. CBI said the complainant alleged that the directors entered into criminal conspiracy with then officials of PNB's Overlock Branch and others, and cheated the bank by way of diversion of the Cash Credit funds sanctioned for operating business and siphoning off the funds sanctioned for purchase of the machines from the Term Loans on forged documents. It was also alleged that the accused persons in connivance with the bank officials transferred the funds abroad in favour of the foreign suppliers of the machines out of the Term Loan which was neither returned nor the machines were received against the foreign remittance. They diverted the CC funds and Term Loans through a number of local vendors, the probe Agency stated. CBI said the arrested accused were produced today before the Special Judge, CBI Cases, Mohali (Punjab) and remanded to police custody till July 25. UNI