Kanpur tanner investigated for fraud

29 August 2012

The CBI (Central Bureau of Investigation) have raided the offices and residence of a Kanpur based unnamed tannery owner, in connection with a case of alleged fraud worth Rs 40 crore ($7.1 million).

The raids were carried out at the residence and offices of the tannery owner in Kanpur, Pune, Delhi and Agra on August 27 and several documents related to the case were recovered, a CBI official told local reporters. In 2004-05, the tannery owner had allegedly exaggerated figures and cost of leather products to help strengthen the balance sheets and turnover reports. On basis of which, he took a loan of Rs 40 crore ($7.1 million) from several banks, which was never re-paid, the official said. Following which, three FIRs were registered against the tannery owner. When the banks failed to recover the amount, the authorities sought CBI help in the matter, the official said. The initial investigation reveals that the securities attached against the loans with the banks were forged, he said. The tannery owner has refused to comment.

Source: IBN

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