Delhi EOW Registers FIR on Complaint by IDFC Bank for Default in Payment

Acting on a complaint lodged by IDFC FIRST Bank Limited, Delhi Economic Offences Wing today registered an FIR against two companies trading in pulses and their directors for various offences committed, including default in payment of Rs 80 million.

Crux of the Matter

1. The Bank had sanctioned Working Capital Facility to the tune of Rs. 8.00 Crores to the accused company (Sanction Letter reference no. IDFCBANKICAD/DEL/SL/2017-2018/375 dated 14 December, 2017).

2. The Credit Facility was revolving of 12 month lines and repayable on demand as per the terms of the Sanction Letter.

3. The Credit Facility was secured by equitable mortgage, in addition to the Deed of Guarantee on 16 December 2017

4. The Accused company was incorporated in trading of pulses in Naya Bazar, Delhi and was availing credit limits from various banks/financial institutions.

5. It is alleged that the Accused did not adhere to the terms and conditions of sanction and failed to route sales through the bank account specifically opened/designated for the said purpose and to deposit interest and other charges applicable regularly despite requests by the Bank.

6. The Bank is now in the process of filing Original Application before DRT Delhi for recovery of loan against the Accused and also filed complaint u/sec 138 NI Act before Magistrate Court, Delhi for dishonor of cheque.

7. In multiple meetings with the Accused by various bank officials from Business, Credit and collection it has been repeatedly requested to Accused to share details of stock and list of debtors, however Accused didn’t share any details.

8. It is further alleged that , even after continuous follow up by the bank, the accused has not been ready to route their credit churns through Cash Credit account, and are not ready to provide the facts of the funds, realized against the sales of stock and realization of debtors, which shows the malafide of the accused.

9. The accused has not provided Unhedged Foreign Currency Exposure certificate to disclose their unhedged foreign exposure which is a requirement by Reserve Bank of India and on account of such non-compliance Bank is facing censure from RBI.

10. The accused also has refused to provide the insurance for their securities hypothecated or mortgaged with the Bank thereby exposing the hypothecated security to potential risk.

11. The Accused has not submitted Half Yearly Due Diligence Certificate duly certified by statutory auditor or company secretary which is a requirement by Reserve Bank of India.

Curiopedia

IDFC First Bank’s Corporate office is at Naman Chambers, C-32, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051. The matter is linked to the IDFC Bank’s branch at Express Building Bahadur Shah Zafar Marg, New Delhi 110002. The bank is engaged in the banking business and financing, apart from other allied activities and has been granted Banking License. More Info

#DelhiEOW #FIR #IDFC