Suckered: Bank Of Baroda Sees a 375 Cr. Fraud And Quietly Takes The Hit, But Who is the Company That Frauded Them?
Bank of Baroda has an interesting footnote in the Sep 2015 results:
Wow, you think. 375 crores! That’s a lot of moolah to lose in one fraud. But apparently, this was in a bill discounting fraud in Ahmedabad:
There is a suspected fraud. An internal probe is on. If the money cannot be recovered, the bank will have to take a hit… An established company is involved, but I’m not in a position to disclose the name… We sensed something was wrong when a few bills bounced,” said the person who declined to share details as an investigation is underway.It is understood that one of the bank’s offices in Ahmedabad ended up discounting bills against which the underlying trade transactions were fake or non-existent.
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