First Leasing Co under CBI's lens for financial wrongdoing

According to sources in the CBI, the investigating agency has unearthed another financial scam. The Central Bureau of Investigation (CBI) on October 16 registered a case against the former Chairman of the Chennai based First Leasing Company, AC Muttaih including three other directors Farouk Irani, S Dilli Raj and L Shivaramakrishnana of the company for alleged criminal conspiracy, cheating, using forged documents and falsification of accounts during the period of 2005 to 2013. S Dilli Raj was the former Senior Vice President of the company during the period when the irregularities were conducted and is currently President of SKS Microfinance. AC Muttaih earlier also served as the BCCI President.Sources in CBI say that the company sought financial assistance from IDBI bank's Chennai branch for its working capital needs only to divert finances from the bank for other purposes. CBI alleges that the company allegedly carried out a Rs 270 cr bank fraud and falsified accounts during the period 2005 to 2013.The investigative agency has already searched about 8 locations of these officials and has found some incriminating evidencesHowever, IDBI bank told CNBC-TV18 that the exposure of Rs 250 crore has already been marked as npl and they are hopeful of recovering part of the amount.RK Bansal said : "The total exposure of banks is about Rs 1,000 cr, so our exposure at that time is about Rs 250 cr. Chances are that very small amount can be recovered. Any fraud which comes to our notice and that infact pointed out by RBI in this case, we have to file a case with CBI. Once RBI declares it a fraud then there is no way, it has to be declared as a NPA and make 100% provision."Meanwhile, a Statement of Dilli Raj's behalf said: “I resigned from the company on November 22, 2007 and was relieved on January 18, 2008. During my tenure with the said company, I was not a director, a promoter, a shareholder or a key management personnel of the company. My limited role was confined to treasury operations, and I was not involved in the preparation of financial statements. I did not authenticate or sign off any financial statements."He said that his name has been into the controversy unnecessarily. He said he will take all steps in accordance with the law to defend myself and set the record straight.