Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » India
1-min read

Andhra Bank Files Case with CBI Against Pune-based Firms on Loss of Rs 73 Crore

A CBI release said that the bank has accused the two firms of submitting fake bills for 'discounting' and causing it a loss of Rs 73 crore between August 2017 to October 2017.


Updated:October 23, 2019, 11:38 PM IST
facebookTwitter Pocket whatsapp
File Photo of CBI Headquarter.
File Photo of CBI Headquarters.

Pune: The Central Bureau of Investigation has registered a First Information Report upon a complaint filed by Andhra Bank against city-based firms Nipko Engineering Services and M/s Signet Products.

The bank has accused the two firms of submitting fake bills for 'discounting' and causing it a loss of Rs 73 crore between August 2017 to October 2017, a CBI release said on Wednesday.

The Public Sector bank, in its complaint, also asked the agency to look into the role of its own employees in the case.

The two firms are engaged in supply, service and maintenance of electrical, electronic equipment. They opened current account with Andhra Bank with its Andheri branch in Mumbai in July 2016.

"The two companies are not enjoying any type of sanctioned credit limits with the branch. The companies had been submitting 'Usance bills' to the branch for discounting," the complaint said.

The branch discounted these bills in spite of the fact that the companies did not have any sanctioned credit limits, it said. The bills were discounted beyond discretionary powers of the branch head. In discounting of usance bills, the bank pays the amount of the bill to the drawer in advance.

They become due on a specified date from the date of drawing, after which sales proceeds are realised from the drawee (the buyer).

"If two parties are entering into sale-purchase transaction, the purchaser does not pay to the seller party immediately for the goods he had purchased. He presents his bills to the bank and bank makes the payment. This is called bill discounting," a CBI official said.

In the present case, fake bills were submitted by the two firms as there were no sale-purchase transactions in reality. The firms pocketed the funds by defrauding the bills, causing a loss to Andhra Bank, he said.

A case under IPC sections 467 (forgery), 420 (cheating) was registered and the Central agency is conducting further probe, he said.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results