Loan scam of Rs 72 lakh in Chief Minister Youth Entrepreneur Scheme, EOW Bhopal registered a case against 5 including bank officials

A big fraud has been exposed in the name of bank loan under the Chief Minister Yuva Udyami Yojana. The Economic Offenses Wing has registered a criminal case against the then officials of the bank, the private firm operator and the beneficiary in the loan scam of Rs 72 lakh related to the Central Bank of India Mandideep branch. This action has been taken on the basis of detailed investigation and documentary evidence.

The fraud was done by showing the purchase of an old 120 tonne capacity truck-mounted crane, when in reality the ownership of the crane was changed and it was mortgaged to another financier. Under the scheme, the beneficiary also received a government subsidy of Rs 21 lakh, but the loan installments were not repaid.

what is the matter

The matter came to light when the Senior Regional Manager of Central Bank of India lodged a complaint with the EOW office in Bhopal on October 22, 2021. The complaint alleged that Vijay Pal Singh Parihar, Proprietor S.B./S.V. Enterprises, Mandideep, while taking loan under Mukhyamantri Yuva Udyami Yojana, hid the facts and caused loss to the bank and government scheme by giving misleading information. The case was registered after the preliminary investigation found the allegations to be true.

EOW’s investigation revealed that in the year 2017, S.B./S.V. A loan of Rs 72 lakh was sanctioned by showing the purchase of an old truck-mounted crane of 120 tonne capacity in the name of a firm named Enterprises. The project cost was shown in the papers as Rs 1 crore, of which Rs 28 lakh was mentioned as margin money. On this basis, subsidy/assistance of Rs 21 lakh was also obtained under the government scheme.

Many irregularities revealed in investigation

Many serious facts have come to light during the investigation. The crane which was said to be mortgaged with the bank, was already mortgaged with Axis Bank and its NOC was not taken. The bank neither obtained permission from the regional office nor registered the hypothecation in the RTO. The payment was made into the account of one company, while the vehicle was registered in the name of another company. Later the same crane was transferred to the name of Leo Engineering Service and mortgaged to Tata Finance.

Due to non-payment of installments on time, the loan account was declared NPA in the year 2020. After this, Central Bank of India Regional Manager Ravi Chandra Goyal lodged a written complaint with EOW, Bhopal in October 2021. The EOW confirmed the allegations by verifying documents from bank records, RTO, District Trade and Industry Center (DIC) and other departments.

A case has been registered against them

EOW has arrested Vijay Pal Singh Parihar (Proprietor – S.B./S.V. Enterprises), Gyanendra Singh Aswal (Operator – LEO Engineering Service), Director of All Cargo Logistics Limited and V.V., the then branch manager of Central Bank of India. Iyer along with loan in-charge B.S. A crime has been registered against Rawat under IPC section 420, fraud 409, breach of trust 120-B criminal conspiracy and section 7, 13(1)(a) read with 13(2) Prevention of Corruption Act.