CBI Probes Alleged ₹40-Crore Bank Of Maharashtra Fraud Involving Milk Products Firm

Mumbai, October 13, 2026: The Central Bureau of Investigation (CBI) has launched an investigation against a private company engaged in manufacturing milk products and its directors, who are allegedly involved in a multi-crore fraud. The company and its directors have allegedly caused a loss of around Rs 40 crore to the Bank of Maharashtra.

The agency has claimed that the borrowers had allegedly deceived the bank by submitting incorrect information and presenting financial statements incorrectly while getting the cash credit approved.

Bank Alleges Fraud And Conspiracy

According to the CBI, a complaint was received from the bank alleging that the Sangli-based borrower company and its two directors, in connivance and in furtherance of a criminal conspiracy with unknown public servants and unknown others, had committed offences of cheating, criminal conspiracy and misuse of official position by a public servant, among others.

They allegedly and fraudulently induced the bank to sanction and disburse credit limits to the borrower, thereby causing a wrongful loss of around Rs 40 crore.

Loan Account Turned NPA In 2019

As per the bank, delinquency in repayment of the term loan by the borrowers was observed. "Also, turnover in the cash credit account had diminished. Subsequently, the account became NPA in June 2019. The bank had declared the account of the company as fraud and reported it to the RBI in December 2025. The complaint further disclosed that based on the request of the company the bank had sanctioned a term loan in August 2015 for setting up of a milk processing plant at Solapur," the agency stated in its FIR.

Loan And Collateral Details

The term loan account was opened in February 2016 at Bank of Maharashtra, Pune. The loan was secured through primary security by way of hypothecation of plant, machinery, inventory and receivables and mortgage of land and building. Further, the loan was secured through collateral securities.

The complaint further discloses that the borrower had deceived the bank by submitting incorrect information (that is, monthly stock statements and details of amounts receivable from debtors) and incorrectly presenting financial statements while getting the cash credit approved.

Alleged Diversion Of Bank Funds

In pursuance of the said criminal conspiracy with unknown bank officers and unknown others, the borrower company and its directors dishonestly and fraudulently induced the bank by misrepresenting facts and thereby availed themselves of a term loan and cash credit limits.

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"The borrower company and its directors with fraudulent and dishonest intentions diverted funds. Thus, the accused persons cheated the bank and misappropriated the bank funds and thereby caused wrongful loss to the Bank of Maharashtra and corresponding wrongful gain to themselves," the FIR stated.

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