CBI registers case against Bipin Bohra for defrauding 8 banks of over ₹ 551 cr

The CBI has registered an FIR against the Kolkata-based industrialist Bipin Bohra for allegedly defrauding a consortium of eight banks of over ₹ 551 crore.

Bohra is the Chairman and Managing Director (CMD) of SPS Steel Rolling Mills Limited. The CBI has also initiated the probe in this connection against directors of the company — Sanjukta Bohra, Arjun Santhalia, Sudesh Agarwal and Gora Ghosh. The role of Chartered Accountant D N Gupta and a few others are also under scanner. They were booked under various sections of the Indian Penal Code (IPC) on charges of cheating (Section 420 IPC) and criminal conspiracy (120B IPC).

According to the CBI FIR, the company availed cash credit limit, term loan and line of credit limit amounting to Rs 512 crore from the consortium of banks led by Allahabad Bank, but subsequently revised its audited accounts for financial year 2011-13 "fraudulently and dishonestly".

The subsequent revision of the audited accounts "adversely affected the financial of the company" and the loans became non-performing assets (NPA), it said.

The outstanding debts went up to over ₹ 551 crore, it said.

The other members of the consortium are Indian Overseas Bank, UCO Bank, State Bank of Hyderabad, Central Bank of India, UBI, Oriental Bank of Commerce and Corporation Bank.

Bohra rode the steel boom in 2004-08 and diversified into various businesses. Besides entering into real estate, security services and food processing business, Bohra had also invested in the hospitality and entertainment sectors. The city-based businessmen had a major share in several shows which were telecast in Akash Bangla. Bohra was nominated as the Congress candidate for Burdwan-Durgapur Lok Sabha seat in 2014. But he had withdrawn himself showing personal reasons.

The CBI officers have conducted search operations in the offices of the company in the city on Thursday and seized several papers relevant to the investigation.