The Central Bureau of Investigation (CBI) has filed a chargesheet against Lakhani Shoes Limited and its two directors in a bank fraud case involving over ₹53 crore. The chargesheet was filed before the Court of the Special Judicial Magistrate, CBI, Chandigarh.
According to the CBI, the case was originally registered on October 4, 2021, based on a complaint by the Chief Regional Manager of Indian Overseas Bank, Chandigarh. The complaint stated that the company took multiple loans for business expansion from the bank’s Faridabad and Chandigarh branches. However, the loans later turned into non-performing assets (NPAs), with the default declared on December 12, 2021.
The FIR was registered under IPC sections 120-B (criminal conspiracy), 420 (cheating), 468 and 471 (forgery), and relevant sections of the Prevention of Corruption Act. The complaint alleged misappropriation of funds and misuse of loans granted for manufacturing and trading of footwear.
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A forensic audit report dated July 30, 2019, revealed that Lakhani Shoes had misused loan funds by diverting them to its group companies, and used the cash credit facility to repay loans of its sister concerns. It also found that the company had sold products at lower prices to related parties and manipulated its financial records by forging books of accounts.
The audit also exposed suspicious cash withdrawals and willful diversion of funds. The bank reported these irregularities to the Reserve Bank of India. As a result of the fraud, Indian Overseas Bank reportedly suffered losses amounting to ₹53.61 crore, excluding interest.