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CBI carries out searches at six locations in Mumbai

Press Trust of India  |  New Delhi 

The CBI has carried out searches at six locations in in connection with a Rs 1,400-crore loan default allegedly by an firm, officials said Thursday.

The CBI has registered nine separate cases against for allegedly defaulting on the loans taken from nine banks led by the Indian Overseas Bank, between 2004-12, they said.

These funds were allegedly availed by the company on the basis of fabricated documents and fake balance sheets, they said.

The loans were declared as non-performing assets causing a loss of Rs 1,446 crore to the consortium, they said.

It is alleged that the company round tripped a sizeable portion of the loan funds to the other companies through shell firms showing payments to Mumbai-based Kamlesh Kanungo group, group and J K Shah group, they said.

It is also alleged that funds were transferred to Kamlesh Kanungo group to the tune of Rs 468 crore as false payments for supplying and raw material, Rs 513 crore to group as payment for construction works and Rs 110 crore to J K Shah shown as

Based on the first case registered against the company in 2017, the searches were carried out at the offices of these three companies and residences of their promoters. They searches began earlier this week and completed Wednesday night, officials said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 11 2019. 20:15 IST