InvestorQ : Why has the CBI filed a case of fraud against Kwality Ltd.?
Arya Nanda made post

Why has the CBI filed a case of fraud against Kwality Ltd.?

Anjana Aiyar answered.
7 months ago

One of leading makers of dairy products and ice-creams in India, Kwality Limited, is under investigation by the Central Bureau of Investigation on charges of fraud for cheating a consortium of banks led by Bank of India. CBI has already filed the case of fraud.

According to the CBI, the size of the fraud is estimated to be to the tune of Rs.1400 crore. This fraud was registered after a complaint made by Bank of India. Currently, CBI is conducting search operations at 8 locations, including Delhi, Ajmer and Paliwal.

The CBI case has also named the directors of the company, Sanjay Dhingra, Siddhant Gupta and Arun Srivastava as the co-accused and perpetrators as well as potential beneficiaries of the fraud on the Indian banks.

Among the complaints highlighted by the CBI, Kwality had cheated banks by ways of diversion of bank funds, fictitious transactions with related parties, fabricated documents, falsified financial statements and creation of non-existent assets and liabilities.

While BOI is the leader of the consortium, the consortium also includes other public sector banks like Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanalaxmi Bank and Syndicate Bank.