The Central Bureau of Investigation (CBI) filed a fraud case on Monday against Kwality Ltd, which makes dairy products, for misleading a consortium of banks led by the Bank of India.
The company is charged with Rs 1,400 million fraud.
The agency registered the case following a complaint from the Bank of India. The investigating agency is conducting searches in eight locations, including Delhi, Bulandshahr, Saharanpur, Ajmer and Palwal.
The directors of the company, Sanjay Dhingra, Siddhant Gupta and Arun Srivastava, were also named in the CBI case, in addition to other unknown persons.
The banks said in their complaint that Kwality Ltd misled them by diverting bank funds, bogus related party transactions, fabricated documents / receipts, falsified account books, and creation of bogus assets and liabilities.
In addition to Bank of India, the consortium includes Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank and Syndicate Bank.
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