CBI CONDUCTS SEARCHES AT 7 LOCATIONS IN TWO BANK FRAUD CASES OF OVER RS. 119 CRORE

Face2News/Mumbai

The Central Bureau of Investigation (CBI) has conducted searches at 7 premises on 21.05.2026 in connection with two separate cases registered against M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd. These premises are spread across two cities namely Mumbai and Ahmedabad.

In M/s Shri Hari Extrusion Case, the searches were conducted at residential premises of Directors of these companies on strength of Search Warrants issued by Hon’ble Special Judge for CBI cases, Mumbai. The searches have resulted in seizure of incriminating documents and investigation is continuing. The case pertains to defrauding of Punjab National Bank to the tune of Rs. 61.98 Crore in the matter related to Cash Credit and Term Loan facilities availed from the bank. The borrowers thereafter resorted to fraudulent practices and misutilised the loan funds giving unsecured loans, transaction with sister concerns, non-routing the sales with lender bank, payment to related parties etc.

In M/s Jay Formulations Ltd., the searches were conducted at residential premises of Directors of these companies on strength of Search Warrants issued by Hon’ble Court at Ahmedabad. The case pertains to defrauding of State Bank of India to the tune of Rs. 57.05 crores in the matter related to credit facilities fund based as well as non-fund-based on the basis of false books of accounts and thereafter diverting loan funds.

The total quantum of wrongful loss caused to Public Sector Banks in these two cases is Rs. 119.03 crores.

 

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