CBI raids premises of A’bad firm in Rs 57cr bank fraud case

Ahmedabad: The Central Bureau of Investigation (CBI) conducted searches at multiple locations in Ahmedabad and Mumbai in connection with two fraud cases involving an alleged wrongful loss of more than Rs 119 crore to public sector banks. Officials said seven premises linked to directors of two private firms were searched on Wednesday.

One of the cases pertains to Mumbai-based Shri Hari Extrusion Pvt. Ltd, accused of allegedly defrauding Punjab National Bank of Rs 61.98 crore through misuse of cash credit and term loan facilities. According to the CBI, the borrowers allegedly diverted loan funds by extending unsecured loans, routing transactions through sister concern firms and avoiding sales transactions through the lender bank.

The second case involves Ahmedabad-based Jay Formulations Ltd, which allegedly caused a loss of Rs 57.05 crore to State Bank of India. Investigators alleged that the company secured fund-based and non-fund-based credit facilities using false books of accounts before diverting the sanctioned funds.

CBI officials said searches in the Shri Hari Extrusion case were carried out under warrants issued by a special CBI court in Mumbai, while searches linked to Jay Formulations were conducted under orders from a court in Ahmedabad.

The Central agency said incriminating documents were recovered during the raids and further investigation was underway. Officials added that the combined loss caused to the banks in the two cases stands at Rs 119.03 crore.