Mumbai, May 22 (IANS) The Central Bureau of Investigation (CBI) conducted searches at seven locations across Mumbai and Ahmedabad in connection with two separate bank fraud cases involving alleged losses of more than Rs 119 crore to public sector banks, officials said on Friday.
According to the agency, the searches were carried out on May 21 at premises linked to M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd. The raids were conducted at the residential premises of the directors of the companies after obtaining search warrants from designated courts in Mumbai and Ahmedabad.
In the first case related to M/s Shri Hari Extrusion Pvt. Ltd., the CBI booked the accused for allegedly defrauding Punjab National Bank to the tune of Rs 61.98 crore. The matter pertains to cash credit and term loan facilities availed from the bank.
The agency alleged that after obtaining the loans, the borrowers indulged in fraudulent practices and misused the sanctioned funds. The accused allegedly diverted funds through unsecured loans, transactions with sister concerns, non-routing of sales through the lender bank and payments to related parties.
The CBI said searches in this case were conducted on the strength of warrants issued by the Special Judge for CBI cases in Mumbai. During the raids, investigators seized several incriminating documents, which are being examined as part of the ongoing probe.
In the second case, involving M/s Jay Formulations Ltd., the agency alleged a fraud of Rs 57.05 crore against State Bank of India. According to investigators, the company secured fund-based and non-fund-based credit facilities from the bank by allegedly submitting false books of accounts.
The probe agency further alleged that after availing the credit facilities, the accused diverted the loan funds, causing substantial losses to the bank.
Searches in this matter were conducted at residential premises linked to the directors of the company following warrants issued by a court in Ahmedabad.
The CBI said the combined wrongful loss caused to the two public sector banks in these cases stands at Rs 119.03 crore. Further investigation in both matters is underway.
–IANS
sn/skp