CBI Conducts Searches At 7 Locations In ₹119 Crore Bank Fraud Cases Linked To 2 Companies

Mumbai, May 22: The Central Bureau of Investigation (CBI) has conducted searches at seven premises in connection with two separate cases registered against M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd. The total quantum of wrongful loss caused to public sector banks in these two cases is Rs 119 crore, officials said on Friday.

Searches conducted in Shri Hari Extrusion case

According to a statement issued by the CBI, in the M/s Shri Hari Extrusion case, the searches were conducted at the residential premises of directors of the companies on the strength of search warrants issued by the Special Judge for CBI cases, Mumbai. The searches resulted in the seizure of incriminating documents and the investigation is continuing.

The case pertains to the alleged defrauding of Punjab National Bank to the tune of Rs 61.98 crore in a matter related to cash credit and term loan facilities availed from the bank.

The borrowers thereafter allegedly resorted to fraudulent practices and misutilised the loan funds by giving unsecured loans, conducting transactions with sister concerns, non-routing of sales through the lender bank and making payments to related parties.

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Case linked to SBI loan fraud

“In M/s Jay Formulations Ltd., the searches were conducted at the residential premises of directors of these companies on the strength of search warrants issued by the court at Ahmedabad. The case pertains to defrauding of State Bank of India to the tune of Rs 57.05 crore in the matter related to credit facilities, fund-based as well as non-fund-based, on the basis of false books of accounts and thereafter diverting loan funds,” the statement added.

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