R.P. Infosystems Bank Scam (2018)

An Overview of the R.P. Infosystems Bank Scam

• The leader of the organization had filed a case with the CBI in May 2015, a Canara Bank official said in a statement. Our bank flagged the account as fraudulent in October 2015 and reported it to the RBI. The surviving member banks authorized us to lodge a disciplinary complaint with CBI after the leader bank resigned its post as the group's leader, as mandated by CBI (BS&FC), Kolkata. According to the bank's complaint, which was filed on February 26, the company provided falsified and inflated stock statements to obtain financing.
• The FIR claims that "the claimed lender company deceitfully and maliciously failed to route the sale profits through the loan account and siphoned off the full amount." "The lender company overstated their debts as well." According to the private sector lender's statement, Canara Bank financed a working capital limit of Rs 40 crores (4.69 percent) through the consortium of 17 banks, adding that it was not the consortium's leader. The government investigating agency lodged an FIR against company directors ShivajiPanja, Kaustuv Ray, VinayBafna, vice-president (Finance) Debnath Paul, and anonymous bank officials after receiving a report from Canara Bank Deputy Manager DV Prasad Rao.
• In the R.P. Infosystems scam, they are accused of defrauding a consortium of 17 banks of Rs 515.15 crore. The directors implicated in the case are accused of obtaining the loan using counterfeit shares and debtors' declarations, then avoiding paying it back. State Bank of India, Union Bank of India, Allahabad Bank, Bank of India, Oriental Bank of Commerce, Central State Bank of Patiala, Federal Bank, State Bank of Bikaner and Jaipur, and Punjab National Bank were among the other banks involved in the grouping. Loans were allegedly taken based on forged and falsified documentation.
• The banks also claimed that the company falsified financial documents and failed to deposit sale revenues in the loan account. According to the FIR, RP Infosystem exaggerated its receivables. This is because alleged debtors such as Gail India, Vincent Electronics, and CEAT advised the bank that they had no dealings with the company. Following this, Canara Bank filed an FIR with the CBI with the consent of the coalition's other member banks.
• Canara Bank claims in its complaint, which is now part of the FIR that the firm that manufactures laptops under the Chirag brand has regularly collected monies from the consortium since 2012. According to the FIR, these loans have become non-performing assets. After negotiations with the RBI, IDBI Bank abandoned its role as consortium leader in 2013. (Reserve Bank of India). Canara Bank said that the company had also altered its balance statements, resulting in a dramatic reduction in debt from Rs 821.68 crore on March 31, 2013, to Rs 105.97 crore on March 31, 2014.
• The consortium banks had issued letters of credit (a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the exact amount), which began to devolve when the company's account balance fell below zero. During the final years of the Left's control in Bengal, Roy and Panja are said to have developed relationships with the BuddhadebBhattacharjee government and secured contracts to sell computers to the state government.
• Panja and Roy warmed up to Trinamul after the change of guard in 2011, and the former accompanied Mamata Banerjee on a trip to Singapore. Delhi police detained Panja in February 2013 for allegedly defrauding a Delhi-based corporation out of Rs 18 crore. While returning from Dhaka with the chief minister, he was stopped at Calcutta airport. After IDBI bank filed a complaint stating that R.P. Infosystems had defrauded the bank of Rs 180 crores, the CBI filed a case against the three directors in June 2015. The bank said that the company's three directors took advantage of credit facilities by presenting fraudulent paperwork connected to shares.