CBI Registers ₹210 Crore Bank Fraud Case Against Private Company, Searches Directors’ Premises In Prayagraj

Mumbai, October 29, 2026: The Central Bureau of Investigation (CBI) has registered a case on the complaint of Indian Bank’s Stressed Asset Management Branch, Mittal Chamber, Nariman Point, Mumbai, against a private company and its three directors for allegedly causing a loss of Rs 210 crore to a consortium of five banks.

The agency has registered a case involving alleged criminal conspiracy to cheat and offences under the Prevention of Corruption Act. It has been alleged that the accused persons entered into a criminal conspiracy and obtained cash credit facilities, term loans and letters of credit amounting to Rs 541.46 crore from a consortium of banks led by Indian Bank.

Alleged Financial Manipulations And Diversion Of Funds

According to the CBI, the company was engaged in systematic financial manipulations, including operating clandestine accounts with non-consortium banks and devolving letters of credit through entities sharing common directors and sister concerns.

The company allegedly defrauded the banks by not utilising the funds for the intended purposes for which they had been sanctioned. Further, the company allegedly diverted the funds by siphoning them off through associate companies, causing losses to the banks.

CBI Conducts Searches In Prayagraj

Following registration of the case, the CBI conducted searches at multiple premises linked to the company’s directors in Prayagraj, Uttar Pradesh. During the searches, ledgers pertaining to the relevant period and other incriminating documents relevant to the investigation were recovered and seized.

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The investigation is continuing to ascertain the full extent of the alleged conspiracy, identify the roles of all persons involved, including public servants and private individuals, and trace the end-use of the loan funds, officials said on Thursday.

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