We have got cash credit loan for our business purpose. Recently, due to loss in business, we could not able to submit renewal papers along with audited financials. Now, the account has become NPA. We have been framed charges under Sec.420 for submission of forged/fabricated financials,which we havent did. Bank is telling that we in connivance with bank manager has dothe fraud has been done and because of this fraud bank is stating that they had incurred loss to a sum of sanctioned limit.From the preliminary investigation, we came to know that bank manager himself has submitted forged financials and also signed our signatures in renewal papers to avoid the account becoming NPA due to non-renewal and to mitigate the audit comments.But still bank is saying the fraud has been done jointly in consent with us.
Apart from this case, bank has now started recovery process under SARFAESI.
please share your opinion, since we have not done fraud, how we have to defend the case.
If the account will be closed by sarfaesi,still whether we have to defend the case or case will be closed.If not,how we have to defend the case?
