The CBI has registered a case of loan fraud worth 824 crore rupees committed by Chennai-based Kanishk Gold Pvt Ltd and carried out searches.
Officials said, the CBI carried out searches at the official and residential premises of promoters of Kanishk Gold Pvt Ltd yesterday as it launched probe in the 824-crore rupees loan fraud case.
The case has been registered by the CBI on a complaint from the SBI on behalf of the 14-bank consortium. The agency has booked the company Kanishk Gold Pvt Ltd, its promoter Director Bhoopesh Kumar Jain, Directors – Neeta Jain, Tejraj Achha, Ajay Kumar Jain and Sumit Kedia besides unidentified public servants.
The company engaged in manufacturing gold jewellery which was marketed under the brand name ‘Krizz’ which were sold through distributors till 2014.
But in 2015 it changed its business model to B2B (business-to-business) and started supplying to large retail jewellers, the SBI said in the complaint to the CBI.
The bank has alleged that the company had “misrepresented and falsified” the records and financial statements of the company to show a “rosy picture” since 2009 to avail credit facilities from it.
Kanishk Gold Pvt Ltd and its directors allegedly diverted the funds detrimental to the rights and interests of the bank.
The company’s account was declared fraud and non-performing asset in 2017-18 by various lending banks.