Economic Fraud
CBI Investigates Sargam Electronics for Shocking Rs 22 Crore Scandal
CBI probes Sargam Electronics in a Rs 22 Crore fraud case. Directors accused of cheating, leading to severe financial discrepancies.
The Central Bureau of Investigation (CBI) has initiated a detailed investigation against the home appliance chain, Sargam Electronics, following allegations of a massive bank fraud amounting to over Rs 22.13 crore. The case, filed by the State Bank of India (SBI), implicates the company along with its directors in a scheme involving criminal conspiracy, cheating, and corruption.
Sargam Electronics, which operates a network of over 50 multi-brand showrooms across Delhi, Haryana, Uttar Pradesh, Uttarakhand, Punjab, and Jharkhand, is accused of defrauding the SBI through illicit financial practices. According to the FIR registered by the CBI, the company’s directors, identified as Deepak Kumar, Daya Nand, and Dinesh Kumar Bansal, engaged in activities that violated several sections of the Indian Penal Code (IPC) concerning criminal conspiracy and cheating, along with provisions under the Prevention of Corruption Act.
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The fraud came to light when the SBI, which had been the banking partner for Sargam Electronics since 2013, noticed irregularities in the company’s account activities. The account, which became inactive in 2021, was subsequently declared a non-performing asset in 2022. By September 2023, the SBI officially marked the account as fraudulent.
The core of the allegations centers around the directors’ manipulation of company assets, specifically the stock hypothecated to the SBI. The complaint lodged by the bank details how the accused not only moved but also sold this stock without notifying the bank. Furthermore, the proceeds from these sales were allegedly not returned to the bank, leading to significant financial discrepancies.
The investigation seeks to uncover the extent of the financial mismanagement and the specific actions taken by the directors of Sargam Electronics that led to losses totaling Rs 22.13 crore, plus accrued interest, for the SBI. This case highlights the ongoing challenges within the banking sector regarding corporate fraud and the measures being taken to tackle these sophisticated financial crimes.
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The CBI’s action underlines the government’s stern approach to combating corruption and financial fraud, ensuring accountability at all levels of corporate operations. As the investigation progresses, further details are expected to emerge, which could have significant implications for all parties involved.
KEY HIGHLIGHTS
- CBI files FIR against Sargam Electronics and its directors for alleged bank fraud of Rs 22.13 crore.
- The Delhi-based appliance showroom chain is accused of cheating the State Bank of India (SBI).
- Sargam Electronics had been an SBI customer since 2013 but became inactive in 2021.
- The company allegedly sold inventory pledged as security (hypothecated) to SBI without informing the bank.
- SBI accuses the company and directors of criminal conspiracy and misappropriation of funds.
- The CBI investigation is ongoing.