The CBI’s Mumbai Economic Offences Branch registered a case against a Navi Mumbai firm and its two partners for allegedly causing ₹15 crore loss to Canara Bank. The agency alleged the accused diverted loan funds sanctioned in 2017 for cold storage and Bulk Milk Chilling plants. The company allegedly used false quotations and misrepresented facts to obtain the loan.

CBI Books Navi Mumbai Firm, Partners For Allegedly Causing ₹15 Crore Loss To Canara Bank Through Loan Fraud | AI

Mumbai: The Economic Offences Branch of Central Bureau of Investigation (CBI) Mumbai has registered a case against a Navi Mumbai-based firm and its two partners for allegedly causing loss of Rs 15 crores to Canara Bank. The borrower company and its partners with fraudulent and dishonest intentions diverted and utilized the disbursed funds for purposes other than purpose for which funds were sanctioned.

Loan sanctioned for cold storage project

According to the CBI, a complaint was received from G.A. Anupam, General Manager, Canara Bank, alleging that the borrower company and its partners in criminal conspiracy with unknown public servants and private persons, cheated Canara Bank, to the tune of Rs 15 crores by fraudulently availing term loan of Rs 15 crores, which was sanctioned by the bank in August 2017.

The complaint discloses that the company had approached Canara Bank, for term loan of Rs 15 crores for establishment of cold storage and installation of 40 Bulk Milk Chilling (BMC) Plants. Bank had sanctioned term loan of Rs 15 crores in August 2017 to the borrower. The repayment of principal started from May 2019 which was defaulted by the company and subsequently, the account slipped to NPA in August 2019 and the bank had reported the account of the company as fraud to RBI in April 2024.

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False quotations alleged in loan process

The complaint further disclosed that the borrower had cheated the bank by submitting false quotations for availing the said term loan and mis-utilized bank funds by not installing all the plants with required capacity. Funds were not utilized fully for the purpose for which the loan was availed and the borrower has diverted the funds.

The complaint further discloses that cost of installation of 1 BMC plant with 4000 litres capacity is around Rs. 12.13 lakhs, however, the borrower firm submitted quotation of higher amount thereby inflating the overall value of quotation for installation of 40 BMC plants.

False quotations alleged in loan process

The complaint also discloses that bank funds were siphoned off by giving contract to their group, sister concerns and not created assets by their sister concern company even after full disbursement of the term loan amount.

In pursuance of the said criminal conspiracy with unknown bank officers of Canara Bank and unknown others, the borrower company and its partners dishonestly induced the bank by misrepresentation of facts and thereby availed a term loan of Rs. 15 crores.

The borrower company and its partners with fraudulent and dishonest intentions diverted and utilized the disbursed funds for purposes other than purpose for which funds were sanctioned. Thus, the accused partners cheated the bank

and misappropriated the bank funds and thereby caused wrongful loss to the tune of Rs 15 crores to the Canara Bank and corresponding wrongful gain to themselves.

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