The Central Bureau of Investigation (CBI) carried out searches at multiple locations in Ahmedabad and Mumbai on Wednesday in connection with two separate fraud cases that caused an alleged wrongful loss of over Rs 119 crore to public sector banks. Officials stated that seven premises linked to directors of two private firms were searched.
Shri Hari Extrusion Pvt. Ltd Case
One of the cases involves Mumbai-based Shri Hari Extrusion Pvt. Ltd, which is accused of defrauding Punjab National Bank (PNB) of Rs 61.98 crore. The company allegedly misused cash credit and term loan facilities. According to the CBI, the borrowers diverted loan funds by extending unsecured loans, routing transactions through sister concern firms, and avoiding sales transactions through the lender bank.
Jay Formulations Ltd Case
The second case pertains to Ahmedabad-based Jay Formulations Ltd, which allegedly caused a loss of Rs 57.05 crore to the State Bank of India (SBI). Investigators alleged that the company secured fund-based and non-fund-based credit facilities using false books of accounts before diverting the sanctioned funds.
Searches Conducted Under Court Warrants
CBI officials said that searches in the Shri Hari Extrusion case were carried out under warrants issued by a special CBI court in Mumbai, while searches linked to Jay Formulations were conducted under orders from a court in Ahmedabad.
The central agency recovered incriminating documents during the raids, and further investigation is underway. Officials added that the combined loss caused to the banks in the two cases stands at Rs 119.03 crore.
