CBI Registers Rs 57 Crore SBI Loan Fraud Case Against Ex-Directors of Ahmedabad Pharma Firm
The Central Bureau of Investigation (CBI) has registered a case against the former directors of Ahmedabad-based pharmaceutical company M/s Jay Formulations Ltd, along with unidentified public servants and private individuals, for allegedly cheating the State Bank of India (SBI) in a bank loan fraud of Rs 57.05 crore.
The FIR was registered by the CBI’s Kolkata unit based on a complaint filed by Prakash Singh Bisht, Deputy General Manager of the SBI Consortium. The case names former Managing Director Rakshit Ashwinbhai Patel, former Director Komal Rakshit Patel, and former Director Arjav Maheshbhai Patel, all residents of Satellite area in Ahmedabad, along with other unidentified accused persons.
According to the complaint, Jay Formulations Ltd has its registered office at Hare Krishna Complex on Ashram Road and a manufacturing unit at Bavla. The company had banking relations with SBI since 1996.
Investigators alleged that between 2018 and 2021, the accused persons, in alleged collusion with each other, obtained credit and loan facilities worth crores of rupees through fraudulent means. The loan account was later declared a Non-Performing Asset (NPA) on June 28, 2021.
The alleged fraud was detected during a forensic audit conducted by a firm appointed by the bank. In its report dated February 8, 2024, the auditors reportedly found that the company had submitted false, inflated, and fabricated stock statements to obtain and withdraw large amounts from the bank.
The audit further revealed that nearly 90% of the company’s purchases were shown from only two firms — Meet Pharma and Sukrit Pharma. Around 84% of the company’s sales were shown to two entities — DMP Healthcare and Trisak Healthcare. Investigators found that these entities were allegedly linked to the company’s employees or shareholders.
The forensic audit also raised doubts about the genuineness of the business transactions. Despite claims of movement of goods worth crores of rupees, investigators reportedly did not find supporting documents such as lorry receipts (LRs) or e-way bills in the company’s records.
Auditors also found irregularities in billing records. In some cases, sales transactions were allegedly recorded even before the related purchase documents were generated.
The CBI has started an investigation to find out the role of all accused persons and determine the full extent of the alleged fraud.
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