Business

CBI Books Kwality For Rs 1,400 Crore Bank Loan Fraud

New Delhi: The CBI has filed a fraud case against Kwality Limited, one of the country’s most popular dairy product makers, for allegedly cheating a group of banks of Rs 1,400 crore.

The investigating agency filed the case after searches at eight locations including Delhi on Monday.

Those named by the CBI include Kwality’s directors Sanjay Dhingra, Siddhant Gupta and Arun Srivastava. They have been charged with cheating, forgery, criminal conspiracy and corruption by a consortium of 10 banks led by Bank of India, NDTV reported.

The CBI started its investigations on a complaint by Bank of India, which alleged that Kwality Ltd had taken credit from the bank since 2010 but started defaulting on payments in early 2018. The account was classified as a non-performing asset in August 2018, it said.

“The forensic audit of the accounts showed that out of the total sale of Rs 13,147.25 crore made by the company, only Rs 7,107.23 crore were routed through the consortium of banks. (Kwality) overstated its financial statements by bloating its business operations and indulged in manipulation of accounts by making reverse entries,” the bank said in its complaint.

A CBI spokesman said, “It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising Bank of India, Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanalaxmi Bank, Syndicate Bank to the tune of Rs.1400.62 core,”

Besides Delhi, the CBI also carried out searches in Saharanpur and Bulandshahr in Uttar Pradesh, Ajmer in Rajasthan and Palwal in Haryana.

Kwality Ltd, which was once among India’s oldest and most popular ice-cream makers, has been facing insolvency proceedings since December 2018. It owes around Rs 1,900 crore to creditors.

OB Bureau

Recent Posts

Rs 220 Cr Cocaine Seizure In Odisha: Cargo Ship Crew To Return To Vietnam After Year-Long Detention

Paradip: Crew members of a cargo ship, which has been berthed at Odisha’s Paradip port…

13 minutes ago

After Two-Day Closure, Odisha’s Similipal National Park Reopens For Tourists

Bhubaneswar: After a two-day closure due to heavy rainfall, Similipal National Park located in Odisha’s…

42 minutes ago

Bhubaneswar’s SAI International Residential School Celebrates 7th Founder’s Day In Style

Bhubaneswar: The Annual Founder’s Day of SAI International Residential School (SIRS) was celebrated in style,…

45 minutes ago

Locals Snatch Excise Team’s Vehicle Keys Over Brown Sugar Peddler’s Arrest In Odisha

Balasore: Tension prevailed at Kamarda Bazar in Odisha’s Balasore district during a crackdown by excise…

1 hour ago

Private Plane Crashes In Brazil’s Mountain Resort Town; At Least 10 People Killed

New Delhi: A private plane crashed in Gramado, a popular mountain resort town in Brazil,…

1 hour ago

Desecration Of Hanuman Idol Triggers Protest In Odisha’s Keonjhar

Keonjhar: Desecration of a Hanuman idol in Barbil area of Odisha's Keonjhar district triggered stiff…

1 hour ago

This website uses cookies.