The CBI has registered a case on complaint from Union Bank of India, Ahmedabad (Gujarat) against a private company and its Managing Director among others for allegedly defrauding the public sector lender to the tune of over Rs 55 crore.
It was alleged that the accused was sanctioned and disbursed Term Loans of Rs 50.25 crore by the consortium of banks (e-Corporation Bank now Union Bank of India, Union Bank of India and Central Bank of India) for establishing sugar factory in village Vadod, Surat (Gujarat) to manufacture sugar and related by-products.
It was further alleged that the said accused through its Managing Director and others had cheated the said three consortium banks by resorting to misappropriation, diversion/ siphoning off disbursed Term Loan funds and caused a loss to the tune of Rs 55.39 crore on July 16, 2022 to the said consortium banks, the CBI said in a statement.
Searches were conducted at three official and residential premises of the accused, situated at Surat (Gujarat) which led to recovery of incriminating documents/articles, the agency said.