We all know about the fugitive diamantaire Nirav Modi who conned Punjab National Bank for 13,000 Crore and flew out of country. Now, the owner of Gujarat based pharma company Sterling Biotech has been booked by Enforcement Directorate and CBI for involving in 5000 Cr bank fraud.
Reportedly, the directors of company - Nitin Sandesara, Chetan Sandesara and Dipti Sandesara have set up close to 300 shell companies in India and foreign countries to avail the credit facility of over 5000 Cr.
Last month, some news emerged that UAE authorities have taken Nitin into custody at Dubai airport, but an officer in the know denied the rumor and said that Sandesaras could have escaped to Nigeria. Since India do not have any extradition treaty or Mutual Legal assistance with Nigeria, it's certainly going to be a daunting task for Indian officials to get them back.
With respect to this case, ED and CBI also booked former Andhra Bank director Anup Garg, chartered Accountant Hemant Hathi and few others. In June this year, the assets of pharma company have been attached to the charge sheet.
The Indian officials, who are investigating into the case, have identified that Sandesaras have involved in setting up of benami (shell) companies, fake sales/purchases, insider trading, manipulating balance sheets and inflated turnover to acquire additional loans from the banks.
Our economists have already displeasure over such frauds, which is resulting in high NPAs for banks and eventually leading to financial crisis in the banking sector. Also, the government is under pressure from opposition parties after Vijay Mallya and Nirav Modi went absconding by cheating thousands of crores.