CBI Books Ahmednagar Company in ₹19.98 Crore SIDBI Loan Fraud Case

The Central Bureau of Investigation has registered a case against an Ahmednagar-based private company and its directors for cheating, fraud, and misappropriation of funds causing a loss of ₹19.98 crore to the Small Industries Development Bank of India (SIDBI). The complaint was filed by P.K. Jha, assistant general manager at SIDBI's Bandra Kurla Complex office.

SIDBI had sanctioned a term loan of ₹15 crore and a subordinated loan of ₹5 crore to the manufacturing company in May 2015 for setting up a new unit. The account turned into a non-performing asset in May 2017 after the company failed to clear outstanding dues. Despite written communication from SIDBI, the borrower and its directors failed to respond or pay dues.

SIDBI declared the account as fraud in April 2018 and reported it to the Reserve Bank of India. The CBI alleges that the company and its directors engaged in fraudulent transactions with related entities, raised fake bills and invoices, and suppressed vital information while seeking financial assistance.