The Central Bureau of Investigation (CBI) has registered a case against Kwality Limited, Kwality Limited, one of the country's most popular dairy product makers, and its directors for defrauding Bank of India and other banks of over Rs 1400 crore.
The central probe agency has also conducted searches at eight locations in connection with the case. The CBI has registered the case against Kwality Ltd and its directors Sanjay Dhingra, Siddhant Gupta, Arun Srivastava besides other unidentified persons for causing an alleged loss of Rs.1400.62 crore to a Bank of India-led consortium of banks.
"It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising BOI (lead bank), Canara Bank NSE -3.09 %, BoB, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank NSE -3.69 %, Syndicate Bank to the tune of Rs.1400.62 core (approx.)," CBI spokesperson RK Gaur was quoted as saying by PTI.
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 added.
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.
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)