New Delhi: Popular ice-cream brand Kwality Ltd was on Monday booked by the Central Bureau of Investigation (CBI) for defrauding Bank of India and other banks of more than Rs 1,400 crore. The central probe agency conducted searches in over eight locations spread across four states, including Delhi. Also Read - Uttar Pradesh: CBI Raids BSP MLA Vinay Shankar Tiwari's Premises in Bank Fraud Case Worth Rs 754 Crore
The CBI conducted searches in Delhi, Uttar Pradesh’s Saharanpur, Bulandshahr, Haryana’s Palwal and Rajasthan’s Ajmer on the premises of Delhi-based Kwality Ltd, and its Directors including Sanjay Dhingra, Siddhant Gupta, Arun Srivastava apart from other unknown persons. Also Read - Subramanian Swamy on 'CBI Closing SSR Case' Rumours: Why People in Mumbai in Such Huge Hurry to Close Case?
The search was conducted based on a complaint by Bank of Baroda and consortium of 10 banks that alleged that Kwality had taken credit from them since 2010 and caused them a loss of Rs 1,400.62 crore. Also Read - Sushant Singh Rajput Death Case: CBI Rebuts Closure of SSR Case, Continues Investigation
“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 1,400.62 crore by way of diversion of bank funds, sham transactions with related parties, fabricated documents/receipts, falsified books of accounts, created false assets and liabilities etc,” an official said.
Notably, the leading ice-cream maker has been facing insolvency proceedings since December 2018. The company owes nearly Rs 1,900 crore to its creditors.