The Central Bureau of Investigation (CBI) has registered a case against Vadraj Cement Limited and its top functionaries for allegedly cheating a consortium of 10 banks to the tune of ₹1,688.41 crore.
The others named as accused in the First Information Report (FIR) are company directors Rishi Kamlesh Agarwal, Krishna Gopal Toshniwal and Vijay Prakash Gopivallabh Sharma. Unknown bank officials are also under the scanner.
The consortium lead, Punjab National Bank, had declared the loan account non-performing assets in March, 2018 and subsequently it was declared a fraud by the members banks. The company was in the business of manufacturing and supply of cement. As alleged, it approached the banks for loans to set up manufacturing units in Surat and Kutch in Gujarat.
According to the FIR, the accused diverted huge amounts to its related parties and subsidiaries. The credit facilities obtained from the banks were allegedly transferred in violation of the terms and conditions. The company opened accounts with non-consortium banks and received funds through them, following which they were routed through shell companies.
On Thursday, the CBI carried out searches at three locations in Mumbai and Jaipur for evidence.