The Central Bureau of Investigation (CBI) has taken action against Varun Industries Ltd, a company in Mumbai, for allegedly cheating two public banks out of Rs 388.17 crore. The people involved are Kiran Mehta and Kailash Agarwal, who run Varun Industries Ltd.
In the first case, CBI received a complaint that Varun Industries Ltd had taken loans from the Central Bank of India but didn’t use the money properly. They got the money through a group of banks led by Indian Bank in 2011.
Instead of using the money for what they said they would, the company didn’t use it right and moved it away from the banks.
Also, they got more money than allowed for a project in Jaisalmer. They also got money against bills for goods they exported, but they didn’t pay it back.
Varun Industries Ltd worked with companies in Dubai too. The money they owed these companies kept growing from 2009 to 2012. This looks like they used these companies to take money out of the bank without any plan to pay it back. They did something similar with another bank, Canara Bank, cheating them out of Rs 118.88 crore.
In the second case, the company got money for exporting steel and kitchen stuff, but they used it for different things. This money, about Rs 116.70 crore, got used somewhere else.
They mostly did business with two companies in Dubai, Al Rad International Trading and White Impex General Trading LLC. Most of their sales were with these companies.
These actions raise questions about whether some people in the bank were involved in these actions. This is because they gave money to Varun Industries Ltd for specific things, but the company used it differently.
