The Central Bureau of Investigation has registered an FIR in an alleged ₹62.42 crore bank fraud case on the complaint of Indian Bank against a Mumbai-based firm, its partners, unidentified public servants and private individuals. The agency has alleged that inflated debtor figures and false financial information were used to obtain higher cash credit facilities, causing wrongful loss to the bank.
Inflated Debtor Figures Under Probe
According to the CBI, the complaint alleges that the firm and its partners manipulated financial records by overstating debtor numbers and outstanding amounts. These allegedly falsified records were used to secure enhanced working capital and cash credit facilities from Indian Bank and another financial institution.
Investigators are examining whether the accused entered into a criminal conspiracy to misrepresent the firm’s financial position before the banks. The agency is also looking into the role of unidentified public servants and private individuals named in the FIR.
Searches Conducted After FIR
After registering the case, the CBI conducted searches at multiple premises linked to the firm’s partners in Mumbai and other locations. The searches were carried out after obtaining warrants from the Special Court for CBI cases in Mumbai.
During the operation, investigators recovered and seized several documents and records considered relevant to the case. A preliminary examination of the seized material has reportedly revealed several debtor entities whose credentials and business activities are now being verified.
End Use of Loan Funds Being Traced
The CBI has also seized documents that allegedly indicate debtor figures were artificially inflated to obtain higher credit limits from the banks. Investigators are now tracing the end use of the loan funds to determine how the borrowed money was utilised and whether it was diverted.
The agency said the investigation is continuing and will examine the complete extent of the alleged conspiracy. The roles of all persons involved and the ultimate utilisation of the loan amount will be determined during the probe, while the allegations remain subject to judicial scrutiny.
