CBI Books Chandra Proteco in ₹210 Crore Bank Fraud Case
The agency registers a case against the company, its directors and others over alleged loan diversion and financial manipulation, and conducts searches in Prayagraj.
- CBI registers a case over an alleged ₹210.13 crore bank fraud.
- Chandra Proteco and three directors named in the complaint.
- Consortium loans and credit facilities of ₹541.46 crore under scrutiny.
- Searches in Prayagraj yield ledgers and other documents.
GG News Bureau
New Delhi, 29th Oct: The Central Bureau of Investigation (CBI) has registered a case against Chandra Proteco Limited (CPL), its directors and unknown public servants and other persons over an alleged bank fraud that caused a wrongful loss of approximately ₹210.13 crore to five banks, including Indian Bank.
The case was registered following a complaint by Indian Bank’s Stressed Asset Management Branch in Mumbai. The allegations include criminal conspiracy, cheating and offences under the Prevention of Corruption Act.
The company’s directors named in the case are Ranjeet Gupta, Anilesh Gupta and Aparna Gupta. The CBI is investigating the alleged financial irregularities and the roles of those involved.
Consortium Loans of ₹541.46 Crore Under Scanner
According to the complaint, Chandra Proteco Limited obtained cash credit facilities, term loans and letters of credit totalling ₹541.46 crore from a consortium of six banks led by Indian Bank.
The company allegedly engaged in systematic financial manipulation, including operating undisclosed accounts with banks outside the consortium and allowing letters of credit to devolve through entities sharing common directors or linked sister concerns.
The complaint further alleges that the borrowed funds were not used for their sanctioned purposes. Instead, money was allegedly diverted and siphoned off through associate companies, resulting in losses to the lending banks.
CBI Conducts Searches in Prayagraj
After registering the case, the CBI conducted searches at multiple premises linked to the company’s directors in Prayagraj, Uttar Pradesh.
During the searches, investigators recovered and seized ledgers covering the relevant period, along with other documents considered relevant to the investigation.
The seized material is expected to be examined as investigators trace the movement and end-use of the loan funds.
Investigation Continues
The CBI said the investigation is continuing to establish the full extent of the alleged conspiracy and determine the roles of all individuals involved, including public servants and private persons.
Investigators are also working to trace the loan funds and examine the financial transactions connected to the company and its associated entities.
The allegations remain under investigation, and the registration of the case does not establish guilt.
