Indore News: EOW Case Against Co For ₹3.57 Crore Fraud Against MPIDC, Bank | Representative Image
Indore (Madhya Pradesh): Economic Offence Wing (EOW), Indore, registered a case against M/s Yashas FRP Manufacturing LLP and its directors for allegedly defrauding a bank and the Madhya Pradesh Industrial Development Corporation (MPIDC) of approximately Rs 3.57 crore.
DSP (EOW) Nandini Sharma said that the case was registered against M/s Yashas FRP Manufacturing LLP and its directors, Sanjay Gupta and Shalini Gupta, both residents of Milinda Manor, RNT Marg. The case involves diversion of loan funds, unauthorised sale of mortgaged machinery, and non-payment of government lease rent.
According to the investigation, the firm secured credit facilities totalling Rs 11.05 crore from the bank between 2013 and 2015. These funds, intended for business operations, were reportedly misused.
Between 2013 and 2016, large sums were withdrawn in cash or illegally transferred to the personal accounts of the promoters and other firms. Despite receiving an Export Packaging Credit of Rs 2.95 crore, the company failed to conduct any actual exports.
A CNC Structural FRP Exuder machine, which was mortgaged to the bank, was sold without permission. The proceeds were never deposited back into the loan account. The accused opened current accounts in other banks without informing this bank, violating the loan agreement.
Financial Impact
DSP Sharma further explained that while the initial loan amount was higher, the final financial damage was calculated following a One-Time Settlement (OTS) and a forensic audit. The audit revealed that the bank lost Rs 3.53 crore, while the MPIDC lost Rs 4,95,442 in unpaid lease rent for allocated land, bringing the total fraud amount to Rs 3,57,95,442.
Following a preliminary investigation and forensic audit, the case was registered against the accused under section 409 (Criminal breach of trust by a public servant, banker, or agent), section 420 (Cheating and dishonestly inducing delivery of property), section 120B (Punishment of criminal conspiracy). Further investigation is underway.
