New Delhi: Delhi Police’s Economic Offences Wing (EOW) has arrested chief financial officer of a car dealership business on prices of allegedly duping banking institutions to the tune of Rs 300 crore. The accused has been recognized as Bibhav Sharma, a resident of Gurgaon.
According to joint commissioner (EOW) O P Mishra, HDFC Financial institution had filed a complaint alleging that the administrators of M/s Zenica Cars India Pvt. Ltd and M/s Zenica Functionality Cars had duped the bank to the tune of Rs 102 crore.
“They had named administrators Rash Pal Singh Todd, Mandhir Singh Todd and its CFO Vaibhav Sharma in their complaint. The accused had sought financial help in the form of cash credit history facility, trade improvements and many others,” Mishra said.
According to the terms and conditions executed among the bank and the alleged organization, the accused had to furnish particulars pertaining to utilisation of the money together with particulars of the inventory which ended up hypothecated with the bank.
The trade improvements availed by the alleged firms had to be returned in ninety days. Till March 2018, the alleged firms had been fulfilling the terms and conditions but defaulted right after that, police said.
In June, 2018 an inspection was performed at the showroom of the alleged organization and the bank found only 29 automobiles against two hundred automobiles as promised. Through investigation, it further emerged that the alleged persons had availed financial help of Rs one hundred thirty crore from other financial institutions i.e. ICICI Financial institution, Federal Financial institution, J & K Financial institution and Volkwagen Pvt. Ltd.
Officers of alleged firms have misappropriated around Rs 102 crore. Sharma had explained to the complainant that the firms ended up operating in losses for the last four a long time, even though the stability sheet of the firms showed gains, police said. Rashpal and Mandhir ended up arrested earlier. The alleged organization attained the credit history services/trade improvements and loans for demo automobiles. They marketed the demo automobiles with no NOCs, police said.