A Delhi court has summoned two companies, City Fincorp Services and Advance City Fincorp Consultancy Private Ltd, along with their representatives, on charges of cheating a private hotel in the guise of providing a loan of Rs 200 crore. The accused officials, including Ajay Virmani, Subhash Sharma, Ravi Kumar, Sapan Dhawan, Dinesh Sharma, and Lalit Kumar, have been directed to appear before the court on September 1, 2023, as per news reports.
Misrepresentation of Company Name
The court was hearing a complaint filed by Joy Hotel Resort Private Ltd, which claimed that the accused misrepresented City Fincorp Services as a firm linked to CitiCorp Finance (India) Ltd, a reputed financial services company. The two company names resemble each other, leading to confusion and the alleged deception.
The complainant alleged that the accused cheated them out of Rs 12.5 lakh. Advocate Vijay Aggarwal, representing the complainant, stated that in 2015, the accused learned about the complainant company’s financial distress and offered a loan from City Fincorp Service, Ajmer, claiming it was part of CitiCorp Finance (India) Limited. The accused later requested Rs 12.5 lakh, which the complainant paid in good faith.
Loan Sanctioned and Subsequent Rejection
After receiving the funds, the accused informed the complainant that the loan was sanctioned and would be disbursed. They even showed a copy of the sanction letter and induced the victim into giving post-dated cheques. However, the complainant company later received a letter informing them that the loan could not be sanctioned.
No License Issued by RBI
Upon further investigation, the complainant discovered that City Fincorp Service, Ajmer, was not part of CitiCorp Finance (India) Limited and that the Reserve Bank of India had not issued a license for it to function as a Non-Banking Financial Company (NBFC).
Taking cognizance of the complaint, the Patiala House Court of Delhi has summoned the accused persons and companies, charging them with cheating and criminal breach of trust. The court has directed all accused to appear before it on September 1, 2023.