The Central Bureau of Investigation (CBI) on Friday registered a case against a Madhya Pradesh’s Morena-based company, KS Oils Ltd, for alleged fraud involving Rs 938 crore in State Bank of India (SBI).
Officials said the CBI booked its directors, including Managing Director Ramesh Chandra Garg, and carried out searches at five locations.
The CBI sleuths have searched the factory and registered office in Morena, residences of Garg and another director Saurabh Garg. They have also conducted searches at the company’s office at Barakhamba Road, New Delhi, the officials said.
The agency has booked another director of the company Devesh Agarwal but not carried out searches at his premises.
CBI Spokesperson RK Gaur said that the company allegedly has shown inflated financials while applying for loan facilities. The forensic audit findings of the company have revealed it, he added.
He further said that the company has allegedly misappropriated the loan amount through fraudulent diversion.