The Central Bureau of Investigation (CBI) conducted searches at seven locations in Mumbai and Ahmedabad related to two separate bank fraud cases. The searches, carried out on May 21, targeted premises associated with M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd. The raids were authorized by designated courts in Mumbai and Ahmedabad and focused on the residential premises of the companies’ directors.
In the first case involving M/s Shri Hari Extrusion Pvt. Ltd., the CBI accused individuals of defrauding Punjab National Bank of Rs 61.98 crore through cash credit and term loan facilities. The agency claimed that the borrowers engaged in fraudulent activities and misused the sanctioned funds, diverting them through various means such as unsecured loans and transactions with related parties.
Regarding the second case concerning M/s Jay Formulations Ltd., the CBI alleged a fraud of Rs 57.05 crore against State Bank of India. The company reportedly obtained credit facilities based on false accounts and then diverted the funds, resulting in significant losses for the bank. Searches in this instance were conducted at the directors’ residential premises under court-issued warrants in Ahmedabad.
The CBI stated that the total wrongful loss to the two public sector banks in these cases amounts to Rs 119.03 crore. Investigations into both matters are ongoing, with incriminating documents seized during the searches being examined as part of the probe.
