Panaji: The State Bank of India has filed complaint against Panaji based Ganindu Milk and Milk products Pvt Ltd (GMMP) claiming that the milk producer siphoned funds causing a loss of nearly Rs 40 crores to the bank.
The bank alleged that GMMP sought a term loan of Rs 34.20 crores on 15th March 2011 and diverted funds.
The FIR copy of the complaint names three companies - GMPP - the loan seeker, SPTS (Shree Perfect Tech Solutions) - the company that was to provide ultra-heat machineries and AMPM commodities Private Limited - a supplier of milk and milk products to Siddharth Group. Siddharth Group Companies is the parent company of GMMP. Siddharth Group Companies owns another 12 companies.
GMMP had sought the term loan to procure machineries - an Ultra Heat Temperature Machine to be installed at Tembhuhrni in Maharashtra. The company, the complaint explains, was to procure land at Tembhurni or Ichhalkaranji. Thane (Maharashtra) based Shree Perfect Tech Solutions Pvt Ltd (SPTS) was to supply the machinery.
The bank in its assessment found that neither was land procured nor was any machinery installed - this, in spite the bank disbursing the loan in a record span.
Common-men who apply for a business, car, housing, or educational loan usually have to wait for at least a month before the verification processes are completed. The processes include scrutinizing credit status, and even confirming the repayment capacity. But in this case all processes were completed in a matter of a week’s time. The bank said that two payments were made to GMMP and that too within a week's time of the application and the end-use of funds was not monitored.
Fake reports were furnished by the borrowers regarding the business. The bankers associated with disbursing the loan failed to conduct verification. They rather sanctioned the money at face value without conducting any due diligence. The bank in its assessment found that its employees - MP Rajagopalan, AGM and Surender Prasad, Deputy Manager working from the SBI commercial branch in Panaji had colluded with the accused. The bank also explains in the FIR that these colluding managers neglected the bank's interest rates during the processing, pre-sanction inspection, appraisal, disbursal and post sanction follow-ups which lead to defrauding the bank.
The bank in the FIR names the key accused - Dnyandeo G Salunkhe, Director of GMMP, Varsha Anand Shinde, Director and Guarantor of GMMP; Pramod Kumar Surolia, Financial Consultant and a CA; Dnyanshwar Babaji Phalke a Peon from consultant Surolia’s CA firm, who was also the promoter and director of a trading firm based in Mumbai.
Although the bank had credited the accounts of SPTS directly since the company was to provide machinery, officials from SPTS claimed that their director (Dnyanshwar Babaji Phalke) asked them to credit the entire amount to AMPM commodities claiming that SBI had wrongly disbursed the amount.
SBI's verification post the disbursal of amounts revealed that this was a dubious case of transfer of funds. Worse, the UHT machines proposed to be bought and shown during the preliminary stages were second-hand ones. "The inspection further revealed that one of the machines even had an old sticker of Bank of India under the new SBI sticker which indicated that the machinery shown was not purchased out of Bank's finance, thus evidencing fraudulent diversion/misappropriation of funds by M/s GMMP." reads the complaint from the bank.
The bank forwarded the case to its Forensic auditor- KPMG. KPMG in its report, the bank says, found that GMMP and Shree Perfect Tech Solutions were related, and that the latter was a non-existent entity since it was struck-off from the Registrar of Companies (RoC).
KPMG's report helped the bank confirm a siphoning or diversion of funds.
SBI claims that the diversion caused a loss of Rs 39.41 crores (term loan and other credit facilities). This amount excludes the interest and other processing charges.
The bank has sought a CBI inquiry and also demanded that a look-out notice be issued against the alleged fraudsters.
The case presents an intricate fraud committed by a financial consultant, who himself was an ex-banker and a Chartered Accountant. Pramod Surolia had earlier been in the news about a fortnight ago for installing the peon of his CA firm as the Director of a Mumbai-based garment manufacturing unit and thereby usurping the company from its original owners.
The Times of India published a report with the headline- “CA ‘forges’ signatures, instals peon as director to ‘grab’ firm”. The report details that Amit Surolia, the son of Pramod, was arrested.
Kabras, the promoters of NRK overseas Limited, a garment manufacturing and trading company operating in Saki Naka, Mumbai found that Surolia had literally grabbed their firm. The Kabras were retired from their own company without their knowing. Investigators said that Pramod Surolia forged signatures on Form 20, to transfer shares and thereby ownership from the Kabras to himself, his son and his peon.
Sify.com analyzed MCA data and found that Dnyanshwer Babaji Phalke, the peon named in the complaint and who unwittingly became Surolia's front man, was associated as a Director with 20 companies. The latest of these was the association as a Director with Sixpack Nutrition Private Limited, made on August 9, 2011.
Pramod Surolia is associated as a Director with at least three firms, according to data from the MCA. He is a director with YKIN Industries Private Limited (January 5, 2016), Sarvajita Gramin Venture Private Limited (Additional Director from February 10, 2012), and Setu Prayas Samsadhan foundation (December 26, 2015). His son Amit Surolia is a Director with eight firms, with the latest announcement made on the MCA website on August 23, 2013 (YKIN Industries Limited).