CBI books rice mill, three directors in ₹100 crore cheating case
The directors of the rice mill allegedly obtained credit facilities from the SBI’s commercial branch in Haryana’s Karnal by misrepresentation of facts, says a CBI spokesperson
by PTIThe CBI has booked Karnal-based Shakti Basmati Rice Pvt Ltd and its three directors for allegedly cheating the State Bank of India (SBI) to the tune of over ₹100 crore, officials said on Wednesday.
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Directors Shyam Lal, Parveen Kumar and Suresh Kumar allegedly obtained credit facilities from the SBI’s commercial branch in Haryana’s Karnal by misrepresentation of facts, a Central Bureau of Investigation (CBI) spokesperson said.
The company, which manufactured grain mill products (rice), allegedly diverted the loan amount for introduction of share capital, inflated the sale and purchase figures, and devalued stocks to show losses to justify diversion of funds by selling stock out of books, the officials said.
The company allegedly failed to repay the loan amount resulting in the loss of ₹100.46 crore to the bank.
The agency has also booked unnamed public servants in the case, the officials said.