New Delhi, May 22: The Central Bureau of Investigation (CBI) has conducted searches at seven locations across Mumbai and Ahmedabad in connection with two separate bank fraud cases involving an alleged loss of over ₹119 crore to public sector banks.
According to a CBI press release, searches were carried out on May 21 at premises linked to M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd. based on search warrants issued by special courts in Mumbai and Ahmedabad.
In the Shri Hari Extrusion case, the agency alleged that Punjab National Bank was defrauded of nearly ₹61.98 crore through misuse of cash credit and term loan facilities. The accused are alleged to have diverted funds through unsecured loans, transactions with sister concerns and non-routing of sales through the lender bank.
In the Jay Formulations Ltd. case, the CBI alleged a fraud of ₹57.05 crore against the State Bank of India by using false books of accounts and diverting loan funds obtained under credit and non-credit facilities.
The agency said incriminating documents were seized during the searches and further investigation in both cases is underway.(KNC)
