'A' and Indian national worked as Branch manager in a NBFC outside India, whose activity is to lend money to SMEs for equipment finance, car finace on instalment basis. On disbursing loan Post dated cheques are obtained for entire tenure EMIs which may be up to 5 to 7 years. He was incharge of branch responsible for operations like disbursements, registering collaterals, recoveies,Accounting and legal proceedings aginst defaulting customers, depositing money in bank etc. He left resident country without notice to employer with family of Wife and Child before 31 Dec 2017 and presently is In India.
The company is subject to Banking regulation of the country as well as Anti Money Laundering Law has elaborate policies and procedures to be followed in conducting business to ensure integrity of transactions and consumer interest.
Before his departure a Whisle blower from the branch sent some incriminating documents to HO. Based on which Internal Auditor was sent to investigate the case and ssubmit priliminary report which showed evidences about the forgeries, destruction of reecords, ficticious entries in company's records, defalcation of cash etc. The Fraud committee is investigating the same and final report is awaited. Intimation of absconding manager has been given to local police as well as regulators.
Findings in brief.
1) The returned cheques from the customers were missing and legal action was not initiated.
2) False disbursements were made to many customers loan accounts which never existed.
3) Forged documents were created and fictitious files were created by photocopying documents from loan files which were closed earlier.
4) Customer files were missing ( probably destroyed)
5) Entries were passed through JVs for creation of new loans or settling old loans.
6) Customer's Post dated cheques for future deposition were missing in many cases.
Leading to misappropriating cash received from customers for his personal benefit. Monies so received probably remitted outside normal banking channels.
Company is trying to convince him tthrough family members to come to employer and co-operate with investigators and find solution. He is dodging and changing his place of residence.
Querries:
1) This actions would prove fraud , what are the remedies to the host country employer and police.
2) Can action be initiated in India under Anti Money Laundering Law as the amounts and the assets owned by him would mount to proceeds of crime?
3) What is the remedy for foreign employer to purse the matter with Indian authorities?
4) How can a person be deported to Employer's country to face the law ? Can the case be transferred to Indian courts? Which jurisdiction would be appropriate.
5) Can the assets in India be frozen? What if the same have been transferred in th name of family members?
6) Should FIU in India be intimated in this matter as assets of one country are misappropriated and transferred to another country.
