The Central Bureau of Investigation (CBI) carried out raids at seven locations in Mumbai and Ahmedabad in connection with two separate bank fraud cases involving more than Rs 119 crore.
The raids were conducted at the premises of Shri Hari Extrusion Pvt. Ltd. and Jay Formulations Ltd. in Mumbai and Ahmedabad.
In the Shri Hari Extrusion case, searches were conducted at the homes of the company directors based on search warrants issued by a Mumbai court for CBI cases.
During the searches, the CBI seized several incriminating documents. The investigation is still ongoing.
The case is related to an alleged fraud of Rs 61.98 crore against Punjab National Bank involving Cash Credit and Term Loan facilities taken from the bank.
According to the CBI, the borrowers later used fraudulent methods and misused the loan funds. They allegedly gave unsecured loans, carried out transactions with sister concerns, did not route sales through the lender bank, and made payments to related parties.
In the Jay Formulations Ltd. case, searches were conducted at the homes of the company directors based on search warrants issued by a court in Ahmedabad.
This case relates to an alleged fraud of Rs 57.05 crore against State Bank of India involving fund-based and non-fund-based credit facilities obtained using false account books. The accused allegedly diverted the loan funds later. The total wrongful loss caused to public sector banks in these two cases is estimated at Rs 119.03 crore.
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