CBI raids Bhubaneswar-based diamond, gold jeweller for defrauding bank to the tune of over Rs 7 crore

The Central Bureau of Investigation (CBI) conducted simultaneous raids on the residence and office of a Bhubaneswar-based jeweler on the charges of defrauding the Allahabad Bank (now merged with Indian Bank) to the tune of over Rs 7 crore.

The main conspirator has been identified as Dwarka Nath Patro, a prominent gold merchant in Bhubaneswar.  The CBI has booked also Patro’s wife, his son, daughter, daughter-in-law, his partners, and a few public servants for cheating the bank with fake property documents to obtain loan.

According to sources, a written complaint was lodged by Indian Bank, Zonal Manager of Saheed Nagar Bhubaneswar, addressed to Joint Director, CBI, New Delhi. Later, the case was transferred to the jurisdictional CBI branch, Bhubaneswar for taking necessary action.

The complaint requested for CBI investigation into the alleged fraud perpetrated by Dwarka Jewelers and its partners for obtaining money worth over Rs 7 crore sanctioned by then Allahabad Bank (now merged with Indian Bank) for the purpose of trading in gold, silver, precious stone, and diamond ornaments and jewelry.

The complaint alleged that Shri Dwarka Nath Patro, along with its partners namely Pushpanjali Patro, Uma Shankar Patro, Subhashree Patro, the guarantor Bilkish Patro, unknown private persons, and unknown public servants committed fraud, criminal conspiracy, cheating, forgery and thereby caused wrongful loss of Rs 7,14,50,799 to the Indian Bank.

After obtaining the loan, the firm engaged in fraudulent activities and diverted the funds for a purpose other than which the loan was sanctioned. It is alleged that the firm has siphoned off the stocks purchased through bank finance.

Moreover, during verification, it was found that some of the properties kept as security/mortgage are not in the name of the partners and the guarantor. 

Based on the complaint, CBI has registered a case punishable U/s 120-B, r/w 420, 467, 498, and 471 of IPC, U/s 13(2), r/w 13(1)(d) of PC Act, 1988 and U/s 13(2), r/w 13(1)(a) of PC Act, 1988 (as amended in 2018).
Following the complaint, the CBI has been conducting raids since Saturday, reports said.

On the other hand, Dwarka's son Uma Shankar said that he and his family wasn’t able to pay the loans due to some reason and pinned hopes on the court’s order.

“We had taken loan of Rs 6 crore, but weren’t able to repay on time as I was arrested in another case. We are trying to repay the loan amount. However, the bank is not allowing us. Now, everything depends on the court’s order,” said Dwarka’s son Uma Shankar.

He, however, has refused the involvement of any bank officials in the alleged fraud.