Mumbai, October 5, 2026: The Bank Security and Fraud Branch (BSFB) of CBI Mumbai has initiated a probe against a private company and its directors for allegedly committing fraud by diversion of funds, causing a loss of Rs 69 crore to Bank of Baroda (BOB).
The bank in its complaint to the CBI has alleged that the directors and guarantors of the company had resorted to falsification of accounts and did not disclose the related party transactions to the bank, violating the sanctioned terms and conditions.
Company Allegedly Defaulted On Loans
According to the CBI, a written complaint was received from V. Jain, Assistant General Manager at BOB, alleging commission of a financial offence by the borrower company, situated in Ahmedabad and engaged in the business of edible oil, and its directors along with unknown public servants and other unknown persons. It is alleged in the complaint that directors of the borrower company availed various credit facilities from the bank for utilisation in their business.
"The company went for diversification from existing business without having proper tie-up for working capital hence cash flow went under stress. The promoters could not infuse funds for the diversified business and the account turned NPA in August 2021 with an outstanding of Rs 69 crore. The directors of the company resorted to falsification of accounts by preparing a dual set of audited financial statements for FY 2018-19 and didn't disclose the related party transactions and hence concealing the facts, maintained a bank account outside the consortium violating the sanctioned terms and conditions," the bank stated in its complaint.
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CBI Alleges Fund Diversion
The company indulged in non-genuine transactions with related parties and there is every likelihood that these transactions with related parties are accommodation entries without genuine movement of goods, intended to inflate turnover and rotate or siphon funds, CBI stated in its FIR.
A case on charges of criminal conspiracy, cheating and falsification of accounts has been registered by the CBI under the relevant sections of the Indian Penal Code and Prevention of Corruption Act.
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