InvestorQ : What is the Sterling Biotech scam? Why it is bigger than the PNB bank scam?
varsha Motwani made post

What is the Sterling Biotech scam? Why it is bigger than the PNB bank scam?

Answer
user profile image
Sakshi Malhotra answered.
1 year ago


Sterling Biotech, Vadodara based company loan fraud recorded as one of the major fraud cases after the PNB scam. Sterling Biotech loan was a fraud case of around Rs. 5000 crore. This is a serious money-laundering case where a former director of Andhra Bank was under arrest.
The report said, that certain entries in a diary was found and seized by the Income Tax Department in 2011. These entries reflected transactions that amounted to Rs 1.52 crore made to one “Mr. Garg, Director, Andhra Bank” (2008-2009) by the Sandesara brother.

In October 2017, the company reported of taking loan that summing more then Rs 5,000 crore by Andhra Bank. This loan eventually turned into non-performing assets. The FIR has alleged total pending dues of this Gujarat based company amounted Rs 5,383 crore as on December 31, 2016. Crores of unaccounted cash in various companies were found alledged by ED. This giant money was sourced by many Kolkata based bogus shell companies through cash and cheques entry operators in Kolkata.

Many are still unidentified persons under this case that are connected to the alleged bank fraud case.