CBI arrests a director of private company in an ongoing investigation of a case related to bank fraud of Rs.1530.99 crore(approx)

Ludhiana, October 28, 2022: The Central Bureau of Investigation has arrested a Director of a private company based at Ludhiana in an ongoing investigation of a case related to bank fraud of Rs.1530.99 crore(approx).

CBI had registered the instant case on 06.08.2020 against the private company based at Ludhiana & others including its Directors; unknown public servants & private persons  on the allegations of bank fraud. It was alleged that the accused including private company & its  Directors had cheated the consortium of 10 banks, led by Central Bank of India, causing fraud of Rs. 1530.99 Crore(approx). It was further alleged that huge amounts of bank loans were diverted by the the accused to its related parties and subsequently adjustment entries were made. It was also alleged that the accused had shown procurement of machineries from non-reputed suppliers and thereby over-invoiced the bills. Huge amount of primary security against CC Limit i.e. Stock, Finished Goods, etc. were allegedly disposed off by the accused to misappropriate bank money as sale proceeds of goods sold were not deposited with the bank. The said private company based at Ludhiana (Punjab) and having its Units at Malout, Nawanshahr (Punjab), Nemrana (Rajasthan) & Hansi (Haryana) was into the business of manufacturing of Yarns, fabrics, etc.

Searches were earlier conducted on 14.08.2020 at the premises of the accused which led to recovery of  several incriminating documents. LOCs against the accused had been opened. During investigation, CBI had examined several persons. The said Director  was found to be evasive in his replies during investigation.

The arrested accused will be produced tomorrow before the Competent Court at Mohali(Punjab).