Delhi Car dealer held for duping HDFC Bank of Rs 300 cr, Auto News, ET Auto

New Delhi: Delhi Police’s Economic Offences Wing (EOW) has arrested main economical officer of a motor vehicle dealership company on fees of allegedly duping financial institutions to the tune of Rs 300 crore. The accused has been identified as Bibhav Sharma, a resident of Gurgaon.

In accordance to joint commissioner (EOW) O P Mishra, HDFC Bank had filed a complaint alleging that the administrators of M/s Zenica Automobiles India Pvt. Ltd and M/s Zenica Effectiveness Automobiles 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 economical support in the kind of income credit score facility, trade innovations and many others,” Mishra reported.

In accordance to the conditions and disorders executed between the bank and the alleged company, the accused had to furnish details pertaining to utilisation of the funds together with details of the stock which were being hypothecated with the bank.

The trade innovations availed by the alleged providers had to be returned inside ninety times. Until March 2018, the alleged providers had been fulfilling the conditions and disorders but defaulted just after that, police reported.

In June, 2018 an inspection was conducted at the showroom of the alleged company and the bank observed only 29 autos versus two hundred autos as promised. During investigation, it further more emerged that the alleged persons had availed economical support of Rs a hundred thirty crore from other economical establishments i.e. ICICI Bank, Federal Bank, J & K Bank and Volkwagen Pvt. Ltd.

Officials of alleged providers have misappropriated close to Rs 102 crore. Sharma had advised the complainant that the providers were being managing in losses for the previous 4 many years, when the stability sheet of the providers showed income, police reported. Rashpal and Mandhir were being arrested previously. The alleged company obtained the credit score services/trade innovations and financial loans for demo autos. They offered the demo autos without NOCs, police reported.