Indian Bank-Fraud Cases Across Industries: How Mid-Sized Businesses Can Defraud Banks and Investors
Indian Bank-Fraud Cases Across Industries: How Mid-Sized Businesses Can Defraud Banks. Similar mode is used in case of investors. 1. Quality Plaza Auto Cars — Automobile dealership, Hyderabad Alleged SBI loss: ~₹3.2 crore | Credit exposure: ₹5.9 crore after enhancement Quality Plaza Auto Cars Pvt Ltd had obtained a ₹4.2 crore credit facility from HDFC Bank . SBI took over the exposure in September 2017 and enhanced it by about ₹1.7 crore . The business suffered declining sales during 2018–19 . Its accounts underwent multiple restructurings . The borrower subsequently failed to comply with the sanctioned/restructured terms. An SBI inspection in early 2020 found the Nizamabad showroom closed . More importantly, hypothecated stock, plant and machinery worth about ₹4.9 crore were reportedly missing . SBI alleges that these assets had been disposed of without the bank's permission . The proceeds allegedly were not credited to the loan account . The account became an NPA i...