CBI files FIR against Gujarat firm for Rs 55 crore bank loan fraud

The CBI registered a case against the firm after getting a complaint from Union Bank of Indias Ahmedabad branch.A consortium of three banks led by the Union Bank of India had sanctioned and disbursed a loan of Rs 50.25 crore to the accused for establishing a sugar factory at Vadod village in Surat district.Instead of utilising the loans for setting up the sugar factory, the accused firm and its MD cheated the banks through misappropriation and diversion of the loan funds, which caused a loss to the tune of Rs 55.39 crore to the said consortium banks, the release said.

The Central Bureau of Investigation (CBI) on Wednesday said it has registered a case against a Surat-based private firm, its top official and others for allegedly cheating a consortium of banks of Rs 55.39 crore. The first information report (FIR) was filed against 'Shree Mandvi Vibhag Sahakari Khand Udyog Mandli Ltd', its managing director Ravindra Patel, and other private persons as well as unidentified public servants, the probe agency said in a release.

The CBI also carried out searches at three locations, including the official and residential premises of the accused situated in Surat city of Gujarat, which led to the recovery of incriminating documents and articles, it said. The CBI registered a case against the firm after getting a complaint from Union Bank of India's Ahmedabad branch.

A consortium of three banks led by the Union Bank of India had sanctioned and disbursed a loan of Rs 50.25 crore to the accused for establishing a sugar factory at Vadod village in Surat district.

Instead of utilising the loans for setting up the sugar factory, the accused firm and its MD cheated the banks through ''misappropriation and diversion of the loan funds, which caused a loss to the tune of Rs 55.39 crore to the said consortium banks, the release said.