CBI Raids Seven Locations In Two Bank Fraud Cases Worth Rs 119 Crore
CBI raids expose Rs 119 crore bank fraud cases.
The Central Bureau of Investigation (CBI) on Friday conducted searches at seven locations in Mumbai and Ahmedabad in connection with two separate bank fraud cases involving an alleged wrongful loss of over ₹119 crore to public sector banks, officials said.
The searches were carried out at premises linked to Shri Hari Extrusion Pvt. Ltd. and Jay Formulations Ltd., including residential locations of company directors. According to officials, the operations were conducted on the basis of court-issued search warrants in ongoing CBI cases registered in Mumbai and Ahmedabad, respectively. The agency said several incriminating documents were recovered during the raids and further investigation is underway.
In the first case involving Shri Hari Extrusion Pvt. Ltd., the CBI alleged that the accused defrauded the Punjab National Bank of approximately ₹61.98 crore. The case relates to credit facilities, including cash credit and term loans, which were allegedly misused by diverting funds through unsecured lending, transactions with related entities, and failure to route sales proceeds through the lending bank.
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In the second case, involving Jay Formulations Ltd., officials said the accused allegedly defrauded the State Bank of India of about ₹57.05 crore. The company is accused of obtaining fund-based and non-fund-based credit facilities using falsified financial statements and subsequently diverting loan proceeds for purposes not approved by the bank.
Investigators stated that both cases involve systematic misuse of banking facilities, including diversion of funds, manipulation of accounts, and transactions with sister concerns. The combined alleged loss to public sector banks in the two cases has been pegged at ₹119.03 crore.
Officials added that incriminating evidence seized during the searches is being examined, and further questioning of individuals linked to the companies is expected as part of the ongoing probe. The CBI said the investigation is focused on tracing the flow of funds and identifying all beneficiaries involved in the alleged fraud.
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