Ahmedabad/Mumbai: The Central Bureau of Investigation (CBI) conducted searches at seven locations across Ahmedabad and Mumbai on May 21 in connection with two separate bank fraud cases involving M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd., involving a combined alleged fraud of Rs 119.03 crore against public sector banks.

According to the CBI, the searches were carried out at the residential premises of the directors of the two companies after obtaining search warrants from the competent courts in Mumbai and Ahmedabad. During the searches, investigators seized incriminating documents and further investigation is underway.

In the Jay Formulations Ltd. case, searches were carried out at the residences of company directors under warrants issued by a court in Ahmedabad. The company is accused of allegedly cheating State Bank of India (SBI) of Rs 57.05 crore by availing fund-based and non-fund-based credit facilities using allegedly false books of accounts and subsequently diverting loan funds.

In the Shri Hari Extrusion Pvt. Ltd. case, searches were conducted on the basis of warrants issued by the Special CBI Court in Mumbai. The company has been accused of allegedly defrauding Punjab National Bank (PNB) of Rs 61.98 crore in connection with cash credit and term loan facilities availed from the bank.

CBI officials said the borrowers allegedly resorted to fraudulent practices and misused loan funds through unsecured loans, transactions with sister concerns, non-routing of sales through the lending bank and payments to related parties.

According to the agency, the combined wrongful loss caused to public sector banks in the two cases has been estimated at Rs 119.03 crore.

The CBI said the investigation in both cases is continuing. DeshGujarat