IDBI Bank alleges ₹126.07 cr fraud by private firm; CBI registers case

The Central Bureau of Investigation (CBI) has registered a case against a private company and its promoters or directors for allegedly cheating IDBI Bank and misappropriating loan funds amounting to ₹126.07 crore. Following a complaint filed by the bank, the probe agency has recovered ₹28.5 lakh in cash and incriminating documents. The CBI statement didn't mention the name of the company.

"The Central Bureau of Investigation (CBI) has registered a case, based on a written Complaint of IDBI Bank Ltd. against a private company and its Promoters/Directors, with unknown bank officials, on allegations that the said accused entered into a criminal conspiracy to cheat and misappropriate the funds sanctioned by IDBI Bank," a CBI statement said.

The agency further said the borrowers allegedly submitted "forged documents as genuine" to IDBI Bank Ltd., thereby induced the bank to part with loan funds. "The borrower was declared a wilful defaulter and the account was reported as fraud for causing wrongful loss of Rs.126.07 crores to IDBI Bank Ltd."

The agency said it has conducted searches across five different official and residential premises of the accused company and its promoter/directors across the Noida and Ghaziabad areas. "Incriminating documents and Cash totalling ₹28.50 lakh have been found during searches at the premises of one of the Directors of a Private Company. Searches are continuing."

IDBI Bank has not issued any statement on this matter so far. Shares of the lender closed 2.81% down at ₹94.85 on the BSE on Friday.