CBI Books Nagpur Bio-Fertiliser Firm, Directors For Alleged ₹7.76 Crore Bank Fraud
Mumbai: The Special Task Branch of Central Bureau of Investigation (CBI) Mumbai has registered a case against a private company that is in the business of manufacturing of Bio-Fertilizers and Pesticides and its directors for allegedly diverting, siphoning-off the funds from the credit facilities disbursed to them and causing wrongful loss of over Rs 7 crore to the Bank of India and wrongful gain…
The Central Bureau of Investigation (CBI) Mumbai has filed a case against a bio-fertilizer and pesticide manufacturing firm and its directors for allegedly diverting over Rs 7 crore in funds meant for loans from the Bank of India. The company, based in Nagpur, was granted multiple credit facilities by the bank between 2019 and 2024.
According to the CBI, the company, along with unknown individuals, allegedly misappropriated the funds, causing a loss of Rs 7.76 crore to the bank. The complaint alleges that the company inflated transactions, recorded purchases without proper details, diverted funds to related parties, and submitted incorrect records to the bank.
During the 2022-23 fiscal year, the company's creditors in stock statements were found to be significantly lower than their actual values in the company's book of accounts. Forensic audits revealed discrepancies in inventory levels, with the actual inventory being significantly lower than what was recorded. The company's account was classified as Non-Performing Asset (NPA) in March 2023.
The CBI has registered a case based on allegations of criminal conspiracy, misappropriation of funds, cheating, and criminal misconduct under various sections of the Indian Penal Code and the Prevention of Corruption Act.
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