Mumbai, July 8, 2026: The Central Bureau of Investigation (CBI), Mumbai, has registered a case against a private company engaged in the business of garments for allegedly causing a loss of Rs 106 crore to the State Bank of India (SBI).
CBI Registers Bank Fraud Case
According to the CBI, SBI, through its authorised officer, P.S. Bisht, Deputy General Manager, Stressed Asset Management Branch, Ahmedabad, lodged a written complaint which prima facie discloses the commission of offences of fraud, cheating, falsification of accounts, criminal misconduct, and other allied offences by the borrower company, situated at Dadar (West), through its erstwhile directors, along with unknown public servants and other unknown persons.
The company was engaged in the business of garments and was sanctioned credit facilities such as cash credit, term loan, and bill discounting under a multiple banking arrangement. The credit facilities were extended both to the borrowing company and its subsidiary company.
The promoter and managing director of the borrowing company went untraceable in October 2019, whereafter the share price of the company declined sharply, resulting in a loss of market confidence and a consequent deterioration in sales.
Forensic Audit Findings
The loan account was classified as a non-performing asset in February 2019, on which date the aggregate amount outstanding under the said facilities stood at Rs 106.62 crore (being the estimated wrongful loss caused to the bank, excluding notional interest). The account was reclassified as fraud, and the said fraud was duly reported to the Reserve Bank of India in November 2025.
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Having regard to the magnitude of the fraud and to the findings of the forensic audit disclosing diversion of funds, falsification of accounts, and fraudulent transactions, a prima facie case emerges that the borrower derived undue benefit from an irregular sanction and/or wrongful disbursal of the loan funds, which funds were within the dominion of a public servant, such benefit having accrued as a consequence of criminal misconduct on the part of an unknown public servant, thereby warranting an investigation into their role, the agency stated in its FIR.
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