Interim Order 14

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: CC No. CBI/28/2023
RC- 223 2019 A0001/2019
CBI Vs. M/s Advance Surfactants India Limited
28.04.2025
Present: Sh. Saurabh Singh, Ld. PP for the CBI.
IO/DSP Surajit Das, CBI, AC-III, New Delhi in
person.
Submissions on the point of cognizance have been
heard.
As per the allegations in the charge-sheet, Advance
Surfactants India Limited (A-1) had initially availed credit
facilities from different banks under Multiple Banking
Arrangement. Later on, in 2012-13, the borrowing was brought
under consortium banking. The lead bank was State Bank of
India. Major enhancement of the loan was sanctioned to the
borrower company during the year 2012-13. The loan documents
were executed by Ashok Mahindru (A-2), Ashutosh Mahindru
(A-3), Atul Mahindru (A-4) and Ashish Mahindru (A-5). The
investigation has been carried out primarily on the CC limit
obtained by the borrower company which was secured with
hypothecation of stocks and booklets.
Investigation revealed that for the purpose of
obtaining maximum credit facilities, the borrower company
submitted false financial statements/debtor statements. By
inflating the debtor statements, the borrower company made
itself eligible for higher drawing power. Huge receivables were
shown in the debtor statement. The State Bank of India had
purportedly written letters to 05 major debtors seeking
confirmation of the debt. However, the 05 letters recovered from
the bank showed that these letters were never sent/dispatched to
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the 05 debtors. Instead, these 05 letters were sent to the borrower
company itself and thus, no confirmation regarding existence of
the debt was received by the SBI. Surprisingly, no such letter was
addressed/sent/dispatched to HUL which was the biggest debtor
of the borrower company.
During investigation, efforts were made to contact
these 05 companies. 01 out of the 05 companies could not be
traced whereas, the other 04 companies denied having received
any such letter from the SBI. In fact, as per the accounts
maintained by these 05 companies, the amount payable to them
by the borrower company was much less than the amount shown
by the borrower company in its statements. Similarly, statements
obtained from HUL and other companies also showed that the
amount payable by HUL and other companies was much less
than the amount shown by the borrower company in its
statement. The borrower company, through its directors, had also
submitted forged CA certified stock and debtor statements by
using forged documents.
Investigation further revealed that the borrower
company had opened current accounts with several non-
consortium banks and made high value transactions through
these accounts, which was in violation of the terms and
conditions of the arrangement letter. The amount of CC Limit
was diverted in the account of M/s Crest Finvest Pvt. Ltd. and
M/s Advance Finvest Pvt. Ltd., of which the accused persons
were the directors. These companies were not having any
legitimate business. The amount was re-routed to the account of
borrower company to show inflated sales. While opening a
current account with Axis Bank, the borrower company gave a
false declaration that it was not enjoying any credit facilities with
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any other bank and that it was having only one other current
account with Yes Bank.
With respect to the role of Devender Kumar
Aggarwal (A-6), it is alleged that he was the Manager (Finance)
and was working under D.K. Sharma (since deceased), the then
CFO. He had complete knowledge about the manipulation of
debtor statements for availing drawing power. He tried to change
his initial/signatures while submitting inflated debtor statement to
the bank; his signatures were identified by a witness.
I have carefully gone through the record and have
considered the submissions made by Ld. PP. Considering the
facts and submissions, there is sufficient material on record
(including the statement of witnesses) to proceed against all the
accused persons. Accordingly, I hereby take cognizance of the
offences u/s 120-B r/w Sec. 420/467/468 and 471 IPC and
substantive offences thereof.
All the accused persons be summoned for the next
date of hearing.
Notice be also issued to IO/HIO as the case may be
directing him to appear in person along with sufficient spare sets
of the charge sheet and the documents relied upon therein so that
the same could be supplied to the accused persons on the next
date of hearing. The IO shall also furnish the list of un-relied
upon documents on the next date of hearing.
List for appearance of all the accused persons/IO/
HIO/supply of documents/further proceedings on 11.08.2025.
(NISHANT GARG)
ACJM-2-cum-ACJ
RADC/New Delhi/28.04.2025
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