As FDs worth Rs 3.3 crore go missing, Kolkata police probes MCA’s West Bengal office, Allahabad Bank officials

The Ministry of Corporate Affairs’ Eastern Regional Director’s office is once again in the spotlight for the wrong reasons, this time along with officials of Allahabad Bank’s (now merged into Indian Bank) Bow Bazaar branch, over the alleged embezzlement of funds belonging to a company in liquidation.

The case pertains to a liquidation action. The Calcutta High Court had appointed an Official Liquidator for Aparna Lighting India Private Limited and West Bengal Tea Development Corporation in line with a winding-up order passed by the court.

As per the process, the official liquidator has to invest the surplus funds from the realised assets of a company in liquidation.

The Official Liquidator had invested Rs 1.8 crore of Aparna Lighting (India) Private Limited and Rs 1.5 crore of West Bengal Tea Development Corporation Limited in Allahabad Bank term deposits for one year. (Allahabad Bank has now been merged into Indian Bank.)

That money, however, is missing from the bank’s records, prompting the Kolkata police to initiate a probe.

Indian Bank official spokesperson toId Moneycontrol: "Internal investigation by the bank is in progress in this matter. Kolkata police is also investigating and from our end, we are extending full cooperation to the authorities. The Bank has well laid down systems and procedures for accepting deposits."

The Ministry of Corporate Affairs’ regional director refused to comment on the story.

The Official Liquidator had received eight TDR account numbers from the bank.

However, the Anti Bank Fraud Section of Kolkata Police has found that around Rs 35 crore of fake TDRs had been issued by Allahabad Bank. Of the Rs 35 crore of fake TDRs, Rs 3.30 crore of term deposits had been submitted by the Official Liquidator.

“After reconciliations with bank (it was) found these eight TDRs are not available in the bank’s system,” said a note sent by the Official Liquidator to the Regional Director, West Bengal, seen by Moneycontrol.

The Official Liquidator’s office has issued a memorandum to the account officer and department concerned but they are yet to submit a reply to the memo.

The Kolkata police states that “officials of the bank, including branch manager and officials of OL’s office, are under the lens”. Moneycontrol has seen the Kolkata Police’s First Information Report.

Speaking to Moneycontrol, a senior officer of the MCA said: “The Official Liquidator is managing billions of rupees belonging to companies that are in liquidation and keeping them in bank Fixed Deposits till distribution. OLs are required to keep a close watch on such funds as they are the official custodian. Such lapses by officials supervised by the Regional Director’s office are a serious cause for concern.”

This is not the first time the Regional Director’s office in West Bengal has come under the spotlight. Previously, it had been pulled up for not acting on time on a complaint against Saradha chit fund, which is being probed by various investigative agencies, including the Serious Fraud Investigation Office.