New Delhi: The Central Bureau of Investigation (CBI) on Monday filed a fraud case against dairy product manufacturing firm Kwality Ltd. for cheating a consortium of banks led by Bank of India.
The dairy firm is accused of Rs 1,400 crore fraud, The Hindustan Times reported. The investigating agency registered the case after complaint from Bank of India.
Apart from other unknown people, the company’s directors Sanjay Dhingra, Siddhant Gupta and Arun Srivastava have been named in the CBI case.
CBI is conducting searches at eight locations, including Delhi, Bulandshahr, Saharanpur, Ajmer and Palwal.
The consortium led by Bank of India in the complaint includes Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank and Syndicate Bank.
“Kwality Ltd cheated by ways of diversion of bank funds, sham transactions with related parties, fabricated documents/receipts, falsified books of accounts and creation of false assets and liabilities,” said the banks in their complaint.
Kwality Ltd has been undergoing insolvency proceedings since December 2018. It owes over Rs 2,000 crore to financial and operational creditors, the Buisness Today reported.