PRAYAGRAJ: The Central Bureau of Investigation conducted searches across several premises in Prayagraj on Thursday following allegations of an estimated 210.13 crore rupee bank fraud involving Chandra Proteco Limited and its directors. The enforcement action came after the central agency registered a formal case based on a complaint lodged by the Stressed Asset Management Branch of Indian Bank in Mumbai. Investigators seized account books and several crucial documents relevant to the period under scrutiny during the coordinated search operations. The first information report names the company alongside its three directors, Ranjit Gupta, Anilesh Gupta, and Aparna Gupta, in addition to unidentified public servants and private individuals.
Officials stated that the booked entities face allegations of criminal conspiracy, cheating, and offences punishable under the Prevention of Corruption Act. The financial irregularities reportedly inflicted an aggregate loss of roughly 210.13 crore rupees on five consortium banks. Records indicate that Chandra Proteco Limited had originally secured credit facilities amounting to 541.46 crore rupees from a consortium of six lenders headed by Indian Bank. These credit arrangements comprised cash credit limits, term loans, and letters of credit. However, preliminary findings suggest that the borrowers did not utilise the sanctioned capital for designated commercial activities, opting instead to route the money elsewhere.
Diversion of Consortium Credit
The core of the investigation focuses on the systematic diversion of credit lines sanctioned by the six-member banking consortium. According to the agency, the company secured substantial financial assistance to support its business operations but subsequently channeled the borrowed capital into other entities. Investigators are currently tracing the transaction trail to establish how the loan proceeds moved out of the primary accounts.
The inquiry is looking closely into whether the management breached lending terms agreed upon with the financial institutions. Agency officials are examining specific fund flows to establish how capital raised through term loans and cash credit facilities was siphoned away. The findings will form part of the evidentiary material to fix accountability for the resulting non-performing assets across the participating banks.
Undisclosed Accounts and Related Firms
The primary complaint highlights extensive irregularities in everyday banking operations, including the operation of secret accounts outside the lending consortium. By transacting through financial institutions that were not part of the consortium, the company allegedly concealed fund movements from the primary lenders. This arrangement allowed the promoters to transfer capital without triggering oversight from the lead bank.
In addition, the probe points to transactions involving letters of credit opened through firms that shared common directors. CBI teams are analyzing how these inter-company arrangements functioned and whether they were set up specifically to divert credit. Agency officials noted that routing trade finance instruments through associated firms appears to have caused direct financial losses to the lending consortium.
Seizure of Records and Widening Probe
During the searches conducted across Prayagraj, investigating officers took custody of ledgers, transaction records, and related corporate documents. These materials will undergo forensic financial analysis to determine the precise role of each accused director. The agency also aims to uncover whether unidentified bank officials or public servants facilitated the irregular credit extensions and subsequent transfers.
The CBI is now working to match the seized entries with consortium ledger statements to establish the ultimate end use of the disbursed loans. Investigators are evaluating how transactions involving sister concerns caused a deficit of 210.13 crore rupees across five institutions. Further questioning of the named company directors and associated personnel is expected to follow the scrutiny of the confiscated files.
