How the CA’s ₹168 Crore Fraud Involving Fake E-Bank Guarantees was Exposed

CA’s Fake E-Bank Guarantees Exposed: Cyber police have succeeded in arresting a chartered accountant who tried to defraud more than 168 crore rupees by creating a fake e-bank guarantee account. Noida-based Ashish Saxena alias Ashish Roy, son of a retired army officer, is the arrested accused. This is the first case in the country where an accused has been arrested in the e-guarantee fraud case, while another accused is absconding.

How the CA's ₹168 Crore Fraud Involving Fake E-Bank Guarantees was Exposed

Bengaluru: CCB Cyber Police has arrested a chartered accountant who created fake e-bank guarantees of Rs 168.13 crore in the name of private banks. The arrested accused is Ashish Saxena alias Ashish Roy (45), a native of Noida in Uttar Pradesh.

This is the first case in the country where an accused has been arrested in a fraud case in the name of an e-bank guarantee. After issuing a lookout notice against Ashish Saxena, who was hiding in Kuwait, the investigation team, after consulting with the competent authorities, summoned the accused to India and arrested him.

The investigation revealed that the accused Ashish Saxena and another two accused created fake e-guarantee documents worth Rs 168.13 crore by getting a commission of Rs 5 crore from five contractors based in Tumkur, Bengaluru rural. Seven cases of fraud by the accused have now come to light and it is suspected that similar fraud has been committed in many parts of the country. Police said further investigation is going on in this regard.

E-bank guarantee documents worth Rs 1.63 crore issued by a private bank in the name of a Tamil Nadu-based contractor have been uploaded on the website of National e-Governance Services Limited (NESL). The NESL officials who checked the document found it to be fake.

Suspicious of this, when e-guarantees were searched, it was confirmed that there are 11 guarantee documents worth Rs. 116,13,944 in e-guarantees in the surrounding areas of Bangalore. Therefore, NESL officials had complained to the police to take action against the e-guarantee applicants.

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How did they get caught?

A senior police officer said that when the police registered a case and started investigation, 11 e-guarantee applicants were interrogated and two of them had created the e-guarantee by getting commission in the guise of bank officials/agents.

A team led by Inspector Hazresh Killedar, who investigated the case, found the identity of Ashish Saxena and another person who created the fake document. However, information about Ashish Saxena’s residence in Kuwait was available.

Thus, according to the look out notice, Saxena was arrested after he landed in Delhi on March 13. Another person is suspected to be absconding in Delhi and action has been taken to arrest him, the official said.

Accused Ashish Saxena is the son of a retired naval officer. Saxena, who is a chartered accountant, has stayed in many countries including Ukraine and Dubai for many years. It comes down to loan fraud and cases have been registered in many places including Gujarat in the past, the official said.

What is e-Guarantee?

An e-guarantee is a guarantee of financial security of a loan given to a bank account holder based on financial transactions conducted by the bank. For example, the account holder has about Rs 10 to 20 crores.

He has a background in financial transactions. If the same person buys goods worth Rs 5 to 10 crore from any company and agrees to give bank guarantee without being able to pay, the bank will give e-bank guarantee considering his bank financial transaction.

The e-bank guarantee will be valid after NESL gives final approval to these digital documents. Then the account holder gets the goods from the particular company on e-guarantee basis.

If payment is not made within the stipulated time, the bank issued the e-guarantee will have to pay the amount. A police official explained that the facility is widely used by multinational companies and contractors.

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