CBI Books Ahmedabad-Based Company, Directors In ₹18.57 Crore Bank Of India Loan Fraud Case

Mumbai, July 1: The Economic Offences Branch of CBI Mumbai has registered a case against a private company and its directors for allegedly cheating Bank of India to the tune of Rs 18.57 crore.

According to the CBI, the case has been registered on the complaint of R.K. Jha, Deputy Zonal Manager of the bank, alleging that during the year 2025, the borrower company, situated in Ahmedabad, and its directors cheated Bank of India to the tune of Rs 18.57 crore by fraudulently availing credit facilities of Rs 18.40 crore (term loan facility).

Loan Availment Under Scanner

The complaint discloses that the company was engaged in the business of providing solar advisory services and EPC services for solar power projects. The company is also engaged in the lease rental business by way of leasing electric vehicles.

The borrower company availed a term loan of Rs 18.40 crore, which was disbursed on January 22, 2025, in a single tranche to the dealer for the purchase of vehicles.

Thereafter, the bank followed up repeatedly with the dealer from February to March 2025 for invoices, RCs and insurance. However, despite confirmation of receipt of payment by the dealer, the delivery was not initiated. Based on the non-delivery of any vehicle, the branch, vide its letter, informed the dealer to refund the entire amount remitted.

Instead of responding, the dealer was represented by the borrower company, which, through its letter, proposed repayment of the total dues in three scheduled instalments by May 31, 2025. However, the borrower company did not make the payment.

Alleged Diversion Of Funds

The original repayment in the account commenced in April 2025, and the borrower company paid only the first instalment on April 10, 2025, as per the original repayment schedule. No payment was made thereafter.

It is further alleged in the complaint that there was misrepresentation and falsification of the financial position of the borrower by way of inflating the figures in the balance sheet in order to induce Bank of India to sanction and disburse the loan.

It is further alleged that there was a significant increase in revenue in 2024 in the books of accounts, but the inventory remained stagnant, which indicates that the operating revenue was paper-based only. Further, the borrower company diverted funds to connected entities using the dealer for the personal gain of the promoters.

In pursuance of the said criminal conspiracy, the company and its directors, with fraudulent and dishonest intentions, submitted false financials by way of inflating the figures in the balance sheet and, by inducement and deception, got a term loan facility to the tune of Rs 18.40 crore sanctioned from Bank of India in connivance with unknown public servants.

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After obtaining the entire single disbursement of Rs 18.40 crore, the borrower fraudulently diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned. The account was classified as an NPA on August 8, 2025.

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