CBI conducts multi-State searches in Rs 1,109 cr Canara Bank fraud case
The Central Bureau of Investigation (CBI) carried out coordinated searches at six locations across four States, West Bengal, Odisha, Tamil Nadu, and Uttarakhand, on July 18, 2026, in connection with an alleged bank fraud of Rs 1,109 crore involving M/S Gupta Power Infrastructure Ltd., a Bhubaneswar-based company.
The case involves the alleged fraud against Canara Bank through various financial facilities extended to the company.
The CBI says the firm manipulated its stock values, inflated trade receivables, and falsified its financial Statements to obtain additional credit from the bank.
It is also alleged that the loan funds were siphoned off and used for other purposes.
The company is accused of evergreening, which means taking new loans or credit to pay off old dues and avoid having the accounts marked as non-performing assets.
These actions are believed to have caused significant losses to Canara Bank.
The searches were carried out under warrants from the Court of the Special Judge, CBI, Bhubaneswar.
The operation covered the homes of four accused directors in Bhubaneswar, the company's registered office in Kolkata, and three manufacturing units in Kashipur (Udham Singh Nagar district), Tiruvallur (Tamil Nadu), and Bhubaneswar (Odisha). Raiding multiple States at once was meant to match the company's wide operations and to prevent any evidence from being tampered with.
During the searches, CBI teams found several incriminating documents.
Investigators are now reviewing these materials, which could help uncover the alleged financial irregularities and the diversion of funds. Seizing documents from homes, offices, and factories is important because it may help trace the company's transactions and decisions.
This is part of the CBI's work to investigate and prosecute major economic crimes that affect the banking sector.
The coordinated raids show the agency's ability to handle complex investigations across different States.
The company works in power infrastructure and has factories in several regions. It seems to have taken large loans from the bank.
By allegedly manipulating stock values and receivables, the company may have made its financial position appear better than it was, which could have led the bank to extend more credit than it deserved.
If these claims are proven, they show weaknesses in how banks check and monitor loans. The investigation is still ongoing. So far, no arrests have been made in this case.
