CBI Books Nagpur Bio-Fertiliser Firm, Directors For Alleged ₹7.76 Crore Bank Fraud
The Special Task Branch of CBI Mumbai has registered a case against a private bio-fertiliser and pesticide manufacturing company and its directors for allegedly diverting and siphoning credit facilities, causing wrongful loss of over ₹7.76 crore to Bank of India.
According to the CBI complaint filed by a Bank of India deputy zonal manager, the Nagpur-based borrower company received various credit facilities with enhancements between 2019 and 2024. The company and its directors allegedly inflated transactions, overvalued stock, recorded purchases without details, and diverted funds to related parties while submitting incorrect records to the bank.
The CBI noted discrepancies in stock values, debtors, and creditors between bank statements and forensic audit findings. The account was declared a non-performing asset in 2023. Investigation revealed significant differences in creditor valuations between stock statements submitted to the bank and internal records.
