Hyderabad-based oil manufacturers booked by CBI in bank fraud case

Hyderabad: The Central Bureau of Investigation (CBI) on Saturday booked a criminal case against Hyderabad-based Agarwal Industries Chairman and management director Anirudh Pershad Agarwal and four others in Rs 200.17 crore bank fraud case. The accused include Agarwal Industries CDM's two sons, Murarilal Agarwal and Satish Kumar Agarwal. The company is situated at Afzalgunj, Hyderabad and manufactures and exports refined oils, Vanaspati and special fats in the name of Gold Mohar, Gold Coin.

According to CBI, they received a complaint from the manager of Allahabad Bank (now merged with Indian Bank) wherein, he stated that, the company availed a loan amount of Rs 5 crore and non capital working limit of Rs 50 crore was also sanctioned to the company in 2014. In 2018, the company also received a higher loan. However, independent investigation ordered by the bank revealed that, the Agarwal's fabricated the audit financial statements and diverted the loan to other businesses for personal gains.

The company submitted false stock statement to the bank to conceal their irregularities. The directors falsified their books of accounts and willfully defaulted in repayment. This graft has caused a loss to the tune of Rs 200.17 crore, CBI said in its FIR.

The issue came to light when a Delhi-based chartered accountant conducted an independent forensic audit as ordered by the bank and it was proved in the audit that the company was indulged in such irregularities. Based on the complaint filed by the bank manager the CBI has booked the proprietors under section 120 (B) r/w 420, 468, 471 and 477 –A of the Indian Penal Code and section 13(2) r/w 13 (1) (d) of the Prevention of Corruption Act.