- Coordinated raids in two high-value fraud cases involving SBI and Canara Bank uncover crucial financial records and digital evidence
- Investigators probe alleged fund diversion, forged records, siphoning of bank credit and wider criminal conspiracy involving corporate entities
NE BIZ & LEGAL BUREAU
AHMEDABAD, JULY 4
The Central Bureau of Investigation (CBI) on Saturday intensified its crackdown on corporate banking fraud by conducting coordinated searches across Gujarat and Maharashtra in connection with two major loan fraud cases involving more than ₹231 crore, as investigators widened the probe into alleged fund diversion, financial irregularities and criminal conspiracy.
The search operations were carried out in cases registered by the CBI’s Banking Securities and Fraud Branch (BSFB), Bengaluru, following complaints from State Bank of India (SBI) and Canara Bank, involving alleged large-scale misuse of bank credit facilities by corporate borrowers.
The first case pertains to M/s R L Jewels Ltd, its directors and unknown public servants, based on a complaint filed by State Bank of India, Mumbai, alleging a wrongful loss of ₹103.58 crore to the bank.
According to the FIR, the accused allegedly entered into a criminal conspiracy involving cheating, criminal breach of trust, misappropriation of funds and forgery. Investigators suspect that loan proceeds were diverted through current accounts maintained with other banks while financial records and electronic documents were allegedly manipulated to conceal the transactions.
The second case has been registered on the basis of a complaint by Canara Bank against M/s Ashapura Garments Ltd, its directors, unknown public servants and private individuals, alleging a fraud involving ₹128.23 crore.
The CBI alleged that the company and its directors conspired to defraud a consortium of banks led by Canara Bank by diverting bank credit facilities sanctioned for textile operations into unrelated commercial activities.
According to investigators, funds meant for the textile business were allegedly siphoned off and channelled into high-value trading transactions involving steel, aluminium and coal, resulting in substantial losses to the lending consortium.
Searches were conducted at multiple premises linked to both companies, including the residences of directors, corporate offices and business establishments across Gujarat and Maharashtra.
During the operations, CBI officials recovered incriminating documents, financial records and digital evidence, including material relating to the alleged diversion and utilisation of bank funds.
The seized records are now being examined to trace the complete money trail, establish the extent of the alleged conspiracy and identify the roles of all individuals involved in the transactions.
The CBI said the investigation is continuing and further action will be taken based on the evidence collected during the searches.
