Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

Bank Fraud: Special Court convicts CA and Five Others for Life Imprisonment

A special court last day had convicted six persons including a chartered accountant, a branch head of a public sector bank to life imprisonment for allegedly committing fraud by taking a loan of Rs 1.5 crore on false documents from the bank.

 While Manoharlal Ahuja, Amit Ahuja, Mahesh Bohra, Sandesh Nage, Shantilal Chauhan and Bhagwan Das Joshi were sentenced to life imprisonment, another accused Yunus Memon was handed a three-year jail term. While the six accused were fined Rs 1.53 crore each, Memon was asked to pay a fine of over Rs 4 lakh. 

The loan was availed by father-son duo Manoharlal and Amit by Bank of India’s Mandvi branch between 2000 and 2003 for business purposes and daily running of their partnership firm, Swift Service Lining. The two men, who also have other similar cases registered against them, had also taken Letters of Credit worth Rs 1 crore from the bank, against the firm’s stocks and booked debts.

According to the prosecution led by J K Sharma and Rakesh Bhatnagar, the Ahujas submitted documents pertaining to balance sheets and income tax as well as the titled deed of an open plot located in Versova valued at Rs 3 crore at the time of applying for the loan. The prosecution alleged that the open plot did not exist and a forged title deed was submitted as collateral. 

It added that Bohra, a chartered accountant by profession, gave a false certificate stating that the firm is in a good financial condition by forging its balance sheets. He also prepared false documents for the non-existing open plot. Bohra also received the proceeds and opened an account in the name of shell companies maintained in various public sector banks. 

In the year 2004, when the firm became a non-performing asset, the bank found out that the property could not be mortgaged and that the documents were forged. The Ahujas had also claimed that the stocks and book debts had been destroyed in a fire in their godown.

Read more at: https://www.taxscan.in/bank-fraud-special-court-ca/35356/

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