CBI Registers Case Against Steel Company For Rs 1017.93 Cr Bank Fraud

New Delhi: The Central Bureau of Investigation (CBI) initiated a case against Loha Ispaat Limited, a private company based in Raigad, Maharashtra on May 11. The State Bank of India (SBI) filed a complaint accusing the company of defrauding them and five other consortium member banks of approximately Rs 1017.93 crore.

According to the SBI’s complaint, Loha Ispaat Limited, along with Chairman cum Managing Director Rajesh Gaurishankar Poddar, Whole-time Director Sanjay Bansal, Director and Guarantors Rajesh Mohanlal Agarwal, Anju Poddar, and Manish Omprakash Garg, allegedly conspired to deceive the SBI and the other consortium banks, including Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank, and Bank of Maharashtra.

The company reportedly obtained various financial facilities, such as Working Capital Limit, Term Loan, and Non-Fund Based limits, totalling Rs 817 crore. To secure these loans, the accused individuals manipulated the company’s accounts by fabricating sales and purchase transactions. Subsequently, the funds were siphoned off, resulting in the non-repayment of outstanding loans amounting to approximately Rs 1017.93 crore.

In response to the complaint, the CBI conducted searches at nine locations in Delhi, Mumbai, Raigad, and Thane. During these searches, incriminating documents and items were allegedly discovered at the residential and official premises of the accused individuals. The case is currently under investigation by the CBI.