NEW DELHI: The Central Bureau of Investigation (CBI) carried out raids at seven places across Mumbai and Ahmedabad in connection with two separate Bank fraud cases of over Rs 119 crore, the agency said on Friday.
The raids were carried out at the premises of Shri Hari Extrusion Pvt. Ltd. and Jay Formulations Ltd, spread across Mumbai and Ahmedabad.
In the Shri Hari Extrusion Case, the searches were conducted at the residential premises of the directors of these companies on the strength of search warrants issued by the court for CBI cases in Mumbai.
The searches have resulted in the seizure of incriminating documents, and the investigation is continuing.
The case pertains to the defrauding of Punjab National Bank to the tune of Rs 61.98 crore in the matter related to Cash Credit and Term Loan facilities availed from the bank.
The borrowers thereafter resorted to fraudulent practices and misutilised the loan funds, giving unsecured loans, transactions with sister concerns, non-routing the sales with the lender bank, payment to related parties, etc.
In Jay Formulations Ltd., the searches were conducted at the residential premises of the Directors of these companies on the strength of search warrants issued by the court at Ahmedabad.
The case pertains to defrauding the State Bank of India to the tune of Rs. 57.05 crores in the matter related to credit facilities fund based as well as non-fund-based, based on false books of accounts and thereafter diverting loan funds.
The total quantum of wrongful loss caused to Public Sector Banks in these two cases is Rs. 119.03 crores.
