The CBI has registered a case against city-based Electrotherm (India) Ltd for allegedly cheating the Bank of India of around Rs 632 crore, officials said on Thursday.
The agency also carried out searches at six locations here. The firm and its directors are accused of diverting the funds obtained through the credit facilities given by the public sector bank.
Following a complaint filed by the bank, the case was registered against Electrotherm (India) Ltd, its director Mukesh Bhanwarlal Bhandari, managing directors Shailesh Bhandari and Avinash Bhandari, and whole-time director Narendra Dalal besides unknown persons, a CBI release said.
The company and people associated with it are accused of causing a loss of Rs 631.97 crore to the bank after availing of various credit facilities between 2012 to 2016, the release added. "The forensic audit of the company, conducted by the bank, revealed that the company was allegedly involved in diversion and siphoning off of funds through its subsidiary as well as associate companies which were having common directors," the CBI said.
The company was also allegedly involved in transactions with suspicious dealers accused of issuing false bills without actual delivery of goods, it added. When the company failed to repay the dues, they were classified as Non Performing Assets. CBI conducted searches at six locations in Ahmedabad on the properties of the accused persons and recovered some incriminating documents, said the release.
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