CBI Books Private Company, Directors In Alleged ₹10.82 Crore SBI Bank Fraud Case

Mumbai, July 3, 2026: The Economic Offences Branch of the Central Bureau of Investigation (CBI), Mumbai, has registered a case against a private company and its directors for allegedly cheating the State Bank of India (SBI) to the tune of Rs 10.82 crore.

CBI Alleges Financial Misrepresentation

According to the CBI, S.K. Singh, Assistant General Manager, SBI, Nilambaug, Bhavnagar, Gujarat, gave a written complaint alleging that the Bhavnagar-based borrower company, which is involved in the business of selling non-food agro products in the domestic market, and its directors, in criminal conspiracy with unknown bank officials and unknown private persons, cheated SBI to the tune of Rs 10.82 crore by fraudulently availing credit facilities.

It is alleged that the company, with the intent to cheat SBI, dishonestly and fraudulently submitted balance sheets with inflated sales turnover to induce the bank to sanction credit facilities.

The borrower company had booked revenue from operations and sales returns with related parties and did not disclose the same in financial statements from April 2017 to March 2022, dishonestly leading to inflation of sales in the balance sheets and inducing the bank to sanction credit facilities.

The complaint further disclosed that in 2018–19, the borrower company had recorded the highest turnover by booking huge sales returns through related parties that were not traceable. The borrower company had diverted the funds by way of investments in two entities that were wholly owned subsidiaries of the borrower company.

Funds Allegedly Diverted

In pursuance of the said criminal conspiracy, the borrower company, through its directors, got sanctioned cash credit and term loan facilities from SBI.

The borrower company and its directors, with fraudulent and dishonest intentions, submitted false financial statements and stock statements, inducing the bank by deception to sanction the credit facilities.

The accused persons fraudulently diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned.

Thus, the borrower company, represented by its directors, misappropriated the bank funds and thereby cheated the bank by causing wrongful loss to the tune of Rs 10.82 crore to the bank and corresponding wrongful gain to themselves.

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The directors of the borrowing company failed to service the instalments and interest on the loans and, accordingly, the account of the company was classified as a non-performing asset (NPA) in February 2020. The account was reported as fraud by the lending bank to the RBI in December 2024.

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