Based on an allegation by Golf Technologies, a Magistrate's Court directed Delhi Police to issue notices to Axis Bank's CEO and its top officials with regard to a fraudulent transfer of Rs19.89 crore from its term loan account to that of Tulip Telecom. Golf Technologies alleges collusion because the sum transferred was allegedly shown as debt recovery by the Bank

Following direction from the Metropolitan Magistrate court, the Delhi police have filed a first information report (FIR) against Shikha Sharma, chief executive of Axis Bank as well as its chief operating officer and several senior officials of the Bank. The Court had also asked the police to conduct an investigation into a complaint filed by Golf Technologies (P) Ltd in an alleged fraud of Rs20 crore.

In the complaint, Delhi-based Golf Technologies alleged that the Bank officials forged signature of its director to release Rs19.89 crore from the company's term loan account to current account of a third party. The Company alleged that by forging signatures of its director Sandeep Sagar on a letter of instruction, the Bank transferred the money.

"It is her (alleged) signatures which have been shown to exist by the Bank on the alleged 'Letter of Instruction for Rs19.89 crore allegedly dated 31 December 2012, which is forged and which alleged letter has been forged and brought into existence by the accused Bank and its Officers on the day when this complainant (Sandeep Sagar) was not even in Delhi i.e. 31 December 2012," the complaint reads.

Besides Axis Bank and Shikha Sharma, the complaint mentions names of Siddarth Rath, president and chief operating officer of the Bank. Names of Anil Agrawal, circle head for New Delhi, Sharad Gupta, deputy vice president, Sankar Narayana Sarma, senior vice president, Vivek Bhat, vice president in credit/loans department, deputy vice presidents and relationship managers Deepa Rath, Sanjeev Kumar Singh, Vagish Rawal are also mentioned in the complaint.

Golf Technologies had also mentioned 14 other members of the Axis Bank Board in its complaint.

In its reply, an official spokesperson from Axis Bank, said, "A notice under The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act has been issued against the Borrower for having defaulted in meeting its repayment obligations and the Bank is taking suitable action in this regard. The matter as reported is also being reviewed by our legal team. The bank follows robust systems and processes and believes in maintaining high standards in customer delivery, which are fully compliant with existing regulations."

According to the complaint, Golf Technologies had a relationship with Tulip Telecom Ltd from whom it had drawn about Rs27 crore in 2009 as advance to finance acquisition of a property at Mumbai that was to be developed as data centre. To complete construction of the data centre, Golf Technologies secured a credit facility of Rs50 crore from Axis Bank in September 2012.

Out of the sanctioned credit, Golf Technologies withdrew Rs30 crore in September 2012 itself by instruction the Bank to transfer the money from its term loan account into its current account. "Thereafter, the bank.... surreptitiously released the remaining loan sum of Rs20 crore on 31 December 2012 into the current account of the company with them," the complaint says.

Golf Technologies alleged that the Bank and its officials, then using the 'forged' letter of instruction transferred Rs19.89 crore from a 'fictitious current account number' in the company's name to cash credit account of Tulip Telecom. "Once the funds belonging to Golf Technologies were in their uninterrupted and continuing dominion (albeit, now in the cash-credit account of Tulip), from this transferee account and reportedly acting without any authority from Tulip either, they then reportedly proceeded to appropriate a sum of Rs19.64 crore towards alleged liabilities and/or transactions of the said company (Tulip) towards themselves," it said.

It further said, "Enquiries made by the complainants have revealed that despite this reduction in Tulip's drawings, they (the Bank) have refused to allow Tulip to draw further funds from the Bank within its sanctioned limits, but at the same time, have not released their charge proportionately over its properties."

"Therefore, it is crystal clear that this fraudulently-executed transfer of Rs19.89 crore from Golf Technologies to Tulip was intended to benefit only the accused Bank and its conspiring officers, who have taken personal credit for having recovered sums from Tulip for the benefit of the accused Bank," the complaint filed by Golf Technologies said.

The company also alleged that despite several requests, the Bank did not provide statement of its current and term loan accounts.