Steel trading firm commits Rs 391 cr bank fraud

New Delhi: The woes of commercial banks in the country does not seem to end with a spate of new bank frauds being unearthed almost everyday. Now Chennai-based P S Krishnamurthy Steels Pvt Ltd and its directors have been found to defraud SBI of Rs 391 crore. 

Interestingly, the directors of the company have been already been booked by CBI for similar fraud earlier and investigation was going on in the case when they committed another fraud with the same modus operandi, a statement by CBI said.

This time SBI’s Stressed Assets Management Branch has filed a complaint that P S Krishnamurthy Steels Pvt Ltd and its Directors P S Krishnamurthy and P K Vadivambal have committed fraud on the bank by availing a loan on forged documents and then diverting the funds.

Last year, a company called Thangam Steels Ltd had committed similar fraud and a case was registered against them by the CBI. The directors of both companies are the same and the method of cheating is also the same.