Khaitan Electricals Limited: CBI booked a Bank Fraud case

U31909WB1981PLC033283
07AAACK5587B1ZM
Adverse Media, CBI

Khaitan Electricals Limited has a CBI registered case. The Central Bureau of Investigation has booked city-based Khaitan Electricals promoters in a loan fraud case. The CBI alleged that managing director Sunil Krishna Khaitan and others colluded with various bank officials, produced fake documents to obtain Rs 245 crore loans and diverted the funds.

Since, it is one of the oldest companies in Hyderabad and an established name in ceiling fans market, Khaitan Electricals Ltd has a registered office in Kolkata. It has manufacturing units at Balanagar and Bollaram in Hyderabad and Faridabad in Haryana.

Central Bureau of Investigation

The case was filed in the principal special judge court for CBI cases in Hyderabad. The CBI Chennai Unit is investigating the case.

The CBI alleged that Sunil Krishna, Director Sajjan Dabriwala holding the post of Deputy MD, chief financial officer Swapan Kumar Das and director Biswajit Choudhury, Madan Gopal Todi, Ajay Kumar Kajaria, VK Rungta, Shiv Kumar Bajaj, Anjana Sharma, Gairik Banejee and Sujata Chatterjee — entered into a criminal conspiracy with the bank officials between 2011 and 2018 and cheated the banks.Bank frauds are rising day by day.

Additionally, the CBI further alleged that the accused submitted forged documents to the banks as genuine, falsified accounts and diverted funds. Therefore,sales figures inflated by the accused. Certain suspicious unsecured advances and loan sanctions were found too.

Though, Khaitan Electricals Limited availed a number of credit facilities from State Bank of Travancore in Hyderabad from 1978. It took loans under a consortium arrangement from SBT (now merged with SBI), IDBI Bank and Allahabad Bank in Kolkata and State Bank of Patiala in Faridabad. Hence, the company also took credit facilities from Bank of India, Kolkata.

“The bank officials abused their official position. Therefore, they allowed the accused to illegally divert the funds and misappropriate the funds of the banks,” the CBI said.

Final Word

Khaitan Electricals Limited  failed to repay the loans by violating the loan sanction terms. Therefore the accounts later classified as NPA.

The company ventured into home appliances market in 2011-12 and outsourced it for production and marketing of its home appliances.