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Police files FIR against Axis Bank in fraud case

The Delhi police has filed an FIR against Axis Bank, its nine senior executives and 14 board members for an alleged fraud estimated to be around Rs 20 crore. The move came after a local court directed the police to register an FIR against the bank and its key executives.

“In compliance with the order dated September 25, 2014, passed by the court of metropolitan magistrate Dheeraj Mor, acting on a criminal complaint filed by Sandeep Sagar, director of Golf Technologies, a Rs 600-crore company engaged in IT services, Okhla police station in New Delhi has registered an FIR against Axis Bank,” Golf Technologies said in a statement.

Golf has claimed that Axis Bank without its authority released Rs 20 crore from its loan account of Rs 50 crore to its current account. “…From that current account, on the strength of a forged letter of instruction dated December 31, 2012, (the bank) transferred a sum of Rs 19.89 crore to some other party’s account maintained with that bank. The transfer was done in order to liquidate some liabilities of that other party,” it said. In the complaint, the company has also asked for Rs 167 crore in damages and compensation from the bank.

When asked to comment on the development, a spokesperson of Axis Bank said in an e-mailed statement. “A notice under SARFAESI Act has been issued against the borrower for having defaulted in meeting its repayment obligations and the bank is taking suitable action in this regard. The matter as reported is also being reviewed by our legal team. The bank follows robust systems and processes and believes in maintaining high standards in customer delivery, which are fully compliant with existing regulations.”


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