Overview
- The CBI registered a case on Thursday against Furnace Fabrica (India) Ltd and five named directors for an alleged wrongful loss of Rs 133.52 crore to the State Bank of India.
- The agency carried out searches at multiple premises in Mumbai and Cochin and recovered documents the CBI says are relevant to the fraud probe.
- CBI officials allege the directors obtained inflated credit by submitting false financial information and then diverted or siphoned off loan funds for unsanctioned purposes.
- Investigation is ongoing to establish the full conspiracy, identify any involved public servants or private persons, and trace the end-use of the loan proceeds.
- The case follows a separate, contemporaneous CBI probe into an alleged Rs 30.63 crore fraud on Punjab National Bank, signaling a series of bank-complaint-driven investigations that will rely on forensic accounting and asset-tracing to seek recovery and possible prosecutions.