The Central Bureau of Investigation (CBI) has decided to investigate the role of senior officials from multiple banks, including the State Bank of India (SBI), Union Bank of India (UBI), Canara Bank, Exim Bank, and Central Bank of India, in connection with the ₹354 crore bank fraud case involving Moser Baer India Ltd (MBIL). The company was promoted by Ratul Puri, nephew of senior Congress leader and former Madhya Pradesh Chief Minister Kamal Nath.
CBI Expands Investigation
The federal anti-corruption agency made this disclosure in a status report submitted to a Delhi court earlier this month. CBI is investigating whether bank officials from the branch level to the head office played any role in the financial irregularities related to Moser Baer.
The case first came to light in August 2019, when CBI registered an FIR against Deepak Puri, Nita Puri (Kamal Nath’s sister), their son Ratul Puri, MBIL, and unknown public servants. That same month, the Enforcement Directorate (ED) arrested Ratul Puri in a parallel money laundering probe. He is currently out on bail.
Allegations Against Moser Baer
According to CBI, Moser Baer had been taking loans from various banks since 2009 and underwent multiple debt restructurings. However, when the company failed to repay its debts, the Central Bank of India conducted a forensic audit on April 20, 2019, which identified fraud within the company.
As part of its ongoing investigation, CBI stated that it has:
- Collected 428 documents from banks.
- Scrutinized a large volume of financial records.
- Examined 20 suspects and witnesses between January 21 and February 3, 2024.
Approval Sought for Bank Officials’ Probe
In its report, CBI mentioned that the initial examination of bank officials suggests the involvement of certain public servants in the case. The agency is now seeking administrative approval before proceeding with further investigation. A formal request has been sent to the Chief Vigilance Officers (CVOs) of the respective banks to obtain permission to investigate multiple bank officers at different levels.
However, CBI has not revealed the names of the bank officials under scrutiny.
Officials familiar with the case explained that under Section 17A of the Prevention of Corruption Act, prior approval is required to initiate an investigation against public servants, including bank officers.
ED’s Findings on Misuse of Funds
In its charge sheet, the Enforcement Directorate (ED) alleged that loans amounting to ₹7,979.30 crore were misused and misappropriated by Moser Baer and its directors and promoters. The funds were allegedly diverted to companies under Hindustan Power Group, which is promoted by Ratul Puri.
ED also stated that Moser Baer wrote off receivables and diminished its investments over time, while making no serious efforts to recover the misused funds.
Ratul Puri’s Other Legal Troubles
Apart from the Moser Baer fraud case, Ratul Puri is also named as an accused in the ₹3,727 crore AgustaWestland VVIP chopper scam.
The investigation continues as authorities examine the role of financial institutions and corporate entities in these high-profile corruption cases.
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