In a sweeping crackdown on financial fraud, the Central Bureau of Investigation (CBI) raided five locations in Noida and Ghaziabad, unearthing a ₹126.07 crore bank scam involving top directors of a private firm. With ₹28.50 lakh in unaccounted cash seized and evidence of forged documents emerging, the probe marks a major step in curbing wilful loan defaults plaguing Indian banking.
Web of Deceit: A Conspiracy to Dupe the Bank
The CBI’s investigation stems from a complaint lodged by IDBI Bank, which alleged that a private company and its promoters engaged in a criminal conspiracy to siphon off ₹126.07 crore by submitting falsified documents and inducing the bank into disbursing large loan amounts. The alleged fraud not only reflects a deep-rooted malaise in corporate borrowing practices but also hints at potential collusion from unknown bank officials, also mentioned in the FIR.
The accused, as per the CBI, include Ram Kishor Arora (promoter and managing director), whole-time directors Sangita Arora, Mohit Arora, Parul Arora, Vikas Kansal, Pradeep Kumar, and Anil Kumar Jain, all residents of Gautam Buddh Nagar, as well as Anil Kumar Sharma from Rajendra Nagar, Sahibabad, Ghaziabad. The company in question has not yet been named publicly, but investigators have confirmed it operated in the infrastructure and allied sectors.
The borrowers allegedly diverted loan funds, misrepresented financials, and submitted forged invoices and collateral documents. IDBI Bank eventually declared the account as fraudulent, and the firm was categorized as a “wilful defaulter” after multiple default triggers were breached.
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Trail of Evidence: Cash Seized, Docs Recovered
CBI officials said Saturday’s raids led to the seizure of ₹28.50 lakh in cash and incriminating documents from the residence of one of the directors. The seized materials reportedly include financial records, internal memos, and forged identity documents, all of which point towards a well-orchestrated plan to swindle funds.
The raids took place simultaneously at five locations, including posh residential and office premises in Noida’s sectors and Ghaziabad’s Rajendra Nagar locality. The agency has indicated that searches are ongoing and that more financial instruments, digital evidence, and property documents could be confiscated in the coming days.
A senior official from the CBI stated that the agency is scrutinising the money trail to determine how the diverted funds were used, whether funnelled into shell firms, real estate investments, or overseas holdings. Investigators are also probing whether internal bank staff facilitated or turned a blind eye to the fraudulent activities.
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Systemic Flaws and Regulatory Crackdowns
This case adds to the growing list of high-value loan frauds uncovered by federal agencies in recent years, underscoring systemic lapses in due diligence and credit risk management in Indian banks. The Reserve Bank of India (RBI) has repeatedly flagged concerns about weak monitoring of disbursed loans, delayed reporting of non-performing assets, and inadequate enforcement of “wilful defaulter” penalties.
The CBI’s quick action follows a larger trend of targeted enforcement. The agency has intensified surveillance on corporate borrowing patterns post-2020, as India continues to reel under non-recoverable loans worth crores of rupees. The latest case serves as a reminder of the urgent need to plug loopholes in lending protocols and to bring high-profile financial offenders to justice.
Legal proceedings against the accused are expected to begin soon, and sources say the Enforcement Directorate (ED) may step in to investigate possible violations under the Prevention of Money Laundering Act (PMLA).
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.