A Dubai-based bank has approached EOW to initiate proceedings against 40 Keralites, who have taken loans worth crores of rupees and fled the UAE.Kochi: A Dubai-based bank has approached Indian investigative agencies to initiate legal proceedings against Indian citizens who have taken loans worth crores of rupees and fled the UAE.
About 40 of these people are from Kerala and 27 cases have already been filed against them. The amount that has been siphoned off has been estimated at Rs 800 crore. It is believed that the money has been sent to India through the hawala route.
The economic offenses wing of the crime branch is probing the cases after a Kochi firm, which has the power of attorney of the Dubai bank, complained to the DGP. Five more banks in the Gulf have fallen victim to the fraud and are planning to file cases in India. The total amount that the banks have lost is estimated at Rs 20,000 crore.
The fraudsters took the loan for business purpose under master facility agreement through overdraft, cheque discounting, letters of credit and trust receipt facilities. The audit report of the company and a blank signed cheque were also submitted along with the loan application.
To convert the master facility into cash, they, in partnership with several other companies, produced bills of deals that never took place, truck consignment notes and delivery orders. Since they were short-term loans and those involved had repaid their first loans, the banks disbursed the additional loans without strict scrutiny of the documents.
They took out loans at about 30% of their asset value shown in the audit report. Using one audit report, some obtained loans from nearly 10 banks. The probe will also look to ascertain if the audit report itself was fake.
The initial probe reveals that the fraudsters sold off their Dubai assets and sent the amount they got through loans via the hawala channel to India. When they came to know about the fraud, the banks filed cases against them and sought a travel ban.
But it is understood that they left the UAE before that. When their companies shut, those working there, including Keralites, lost their jobs. Apart from Indians, businessmen from Pakistan, Egypt and other countries have also fallen prey to the fraud.
Case under CrPC Sec 188
The cases have been filed under section 188 of the CrPC. According to this section, any court in India can try a case if the accused is arrested in India for committing any offense in a foreign country.
Those involved in the case include Indian businessmen in fields like diesel sales, steel manufacturing, food processing and sale of seafood products, among others. A Kannur native who is an accused in the red sandalwood smuggling case is also named.
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