FIR against Surat firm for ₹55cr loan fraud

Ahmedabad: The Central Bureau of Investigation (CBI) on Wednesday registered a case against a Surat-based private firm, its top official and others for allegedly cheating a consortium of banks of Rs 55.39 crore. The FIR was filed against ‘Shree Mandvi Vibhag Sahakari Khand Udyog Mandli Ltd’, its managing director Ravindra Patel, and other private persons as well as unidentified public servants. A consortium of three banks led by the Union Bank of India had disbursed a loan of Rs 50.25 crore to the accused for establishing a sugar factory at Vadod village.Instead of utilising the loans for setting up the sugar factory, the accused firm and its MD cheated the banks through “misappropriation and diversion of the loan funds, which caused a loss to the tune of Rs 55.39 crore to the banks. PTI