The Central Bureau of Investigation (CBI) on Saturday registered a case against a private company and its directors for allegedly cheating a consortium of 23 banks to the tune of Rs 6833.82 crore.
Searches are being conducted at nine locations including at Noida, Roorkee, Fatehpur and Kanpur and an investigation is underway, the CBI said.
The investigating agency said that it registered a case based on a complaint from Central Bank of India on behalf of 10 consortium member banks.
It was alleged that the company had reported inflated inventory records. The auction process was not fairly organized and voluminous sale transactions were carried out with undisclosed related parties, informed a CBI official.
The funds were allegedly diverted by the company and this amounts to fraudulent removal or concealment of property etc, to prevent distribution among creditors.
The credit facilities granted to the accused was classified as fraud on July 20, 2020 by the Central bank Of India.
( With inputs from ANI )
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