CBI searches against dairy products firm over Rs 1,400-cr bank fraud

The CBI filed a fraud case against Kwality Ltd, which makes dairy products, for cheating a consortium of banks led by Bank of India. The company is accused of Rs 1,400 crore fraud.

New Delhi: The CBI Monday conducted searches at eight locations after booking Delhi-based dairy products company Kwality Ltd. and its directors for allegedly cheating a Bank of India-led consortium, causing a loss of over Rs 1,400 crore, officials said.

The CBI has registered the case against Kwality Ltd and its directors Sanjay Dhingra, Siddhant Gupta, Arun Srivastava besides other unidentified persons, they said.

"It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising BOI (lead bank), Canara Bank, BoB, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank, Syndicate Bank to the tune of Rs.1400.62 core (approx.)," CBI spokesperson RK Gaur said.

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They allegedly cheated the banks by way of diversion of bank funds, sham transactions with related parties, fabricated documents/receipts, falsified books of accounts and created false assets and liabilities etc, Gaur said.

The searches were conducted Monday at eight locations including at Delhi, Saharanpur, Bulandshahr (Uttar Pradesh), Ajmer (Rajasthan), Palwal (Haryana) etc. on the premises of the private company and other accused. The company’s directors Sanjay Dhingra, Siddhant Gupta and Arun Srivastava have also been named in the CBI case, apart from other unknown people.

Other than 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.

With PTI inputs