100 of Agro Products Companies under CBI Scanner for Bank Fraud

100 of Agro Products Companies under CBI Scanner for Bank Fraud Over the past five years, the Central Bureau of Investigation (CBI) has been investigating about 100 agro-products companies on suspicion of defrauding banks of loans totaling thousands of crores of rupees. More than 20 businesses that trade in commodities including rice, spices, and oil have already been charged with bank fraud totaling more than Rs. 1,400 crore this year. One of the significant instances filed earlier this year is S.A. Rawther Spices Private Limited, which exports and imports coffee and spices. The Jammu & Kashmir Bank provided credit services to the business. The business allegedly lost the bank 352.72 crore as a result of the actions of its employees. The account was classified as a non-performing asset in September 2017 because it had not been paying back the loan on time. Shree Basant Oils Limited and Saurav (India) Private Limited are two more companies that have been accused of bank fraud totaling 124 and 126 crore rupees, respectively. Multiple lawsuits were filed against the commercial organisations that deal in agricultural products last year as well. One such instance was Shri Jalaram Rice Industries and an accused case of bank fraud involving 114 crore rupees. Shakti Bhog Foods Limited and others were arrested by the CBI on December 31, 2021, for allegedly defrauding a group of 10 banks out of Rs.3,269.42 crore. Directors Siddharth Kumar and Sunanda Kumar, as well as the company's managing director Kewal Krishan Kumar, are named in the FIR. In the northern States, the corporation produces and sells goods such wheat flour (under the recognisable brand name Shakti Bhog), rice, biscuits, and cookies. It collaborates with numerous third parties in the other States. "The lending institutions have asserted that money was diverted in each of these situations using a different method. The looted funds are routed through shell corporations before being frequently returned and invested in connected businesses. The accused people utilise the money to buy residences as well. The businesses frequently exaggerate their net worth in order to obtain more credit facilities "an employee of the agency remarked. Source: The Hindu