Surat: The Economic Offences Branch of the Central Bureau of Investigation (CBI) in Kolkata has registered a case against Madhya Pradesh–based M/s Parwati Agro Product Pvt. Ltd., its directors, and unidentified bank officials. The accused allegedly defrauded the National Bank for Agriculture and Rural Development (NABARD) of over ₹11.33 crore in connection with a food processing project in Mangrol, Surat.

The complaint was filed by Ashok Kumar, Deputy General Manager, NABARD, Gujarat Regional Office, Ahmedabad. According to the FIR, the borrower company, with its registered office at Sendhwa in Madhya Pradesh, had approached NABARD, Ahmedabad, for credit facilities to establish six multi-product processing units for cashews, cashew bars, ready-to-eat meals, frozen fruit pulp and vegetable processing at Plot No. B-12 in the Gujarat Agro Infrastructure Mega Food Park Pvt. Ltd. at Mangrol in Surat district.

The FIR stated that NABARD initially sanctioned a term loan of ₹7 crore on August 28, 2020, which was disbursed in three tranches between March 2021 and March 2022.

Subsequently, at the request of the borrower, an additional term loan of ₹4.975 crore was sanctioned on February 3, 2023, with the condition that commercial operations would commence by April 30, 2023, later extended to September 30, 2023. The entire additional amount was disbursed in one instalment on April 27, 2023.

In total, credit facilities amounting to ₹11.975 crore were extended for the project, whose estimated cost was later revised to ₹19.00 crore, with a borrower margin of ₹2.50 crore.

The FIR alleges that between 2020 and 2024, the company, its directors, authorised representatives, unknown bank officials and others entered into a criminal conspiracy and dishonestly induced NABARD to sanction and disburse the loan under the false pretext of establishing the processing units. Instead of utilising the funds for the stated purpose, the accused are alleged to have diverted the money to related entities and misappropriated it for personal gain.

According to NABARD, the acts constitute prima facie offences of fraud, cheating, criminal breach of trust and siphoning off bank funds, resulting in a wrongful loss of ₹11.33 crore to the bank with corresponding wrongful gain to the accused.

The CBI has booked the accused individuals under Section 120B of the IPC and Section 7 of the Prevention of Corruption Act, 1988. Further investigation in the case is underway. DeshGujarat