CBI charges Dairy Maker Kwality With ₹ 1,400 Crore Bank Loan Fraud

Shares of kwality limited on Tuesday came under pressure, as the Central Bureau of Investigation on Monday filed a fraud case for cheating a consortium of banks led by Bank of India.

The shares are currently trading at ₹2.80 apiece, down 3.45 per cent.

Those named by the CBI include Kwality's directors Sanjay Dhingra, Siddhant Gupta and Arun Srivastava. They have been charged with cheating, forgery, criminal conspiracy and corruption by a consortium of 10 banks led by Bank of India, constituted in 2012.

"It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising BoI (lead bank), Canara Bank, BoB, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank, Syndicate Bank to the tune of Rs 1400.62 crore (approx.),” CBI spokesperson R K Gaur said.

The searches were conducted Monday at eight locations including at Delhi, Saharanpur, Bulandshahr (Uttar Pradesh), Ajmer (Rajasthan), Palwal (Haryana) etc. on the premises of the private company and other accused.

The CBI started its investigations on a complaint by Bank of India, which alleged that Kwality Ltd had taken credit from the bank since 2010 but started defaulting on payments in early 2018. The account was classified as a non-performing asset in August 2018, it said.