Rs 975 Crore! Another Bank Loan Fraud Alleged, CBI files FIR

New Delhi: The Central Bureau of Investigation (CBI) has filed an FIR against Mandhana Industries (now GB Global Ltd), a Mumbai-based firm, for allegedly committing a loan fraud of Rs 975.08 crore.

The CBI had received a complaint that led to the filing of this FIR. The complaint alleged that Purushottam Chhaganlal Mandhana, former Managing Director, Manish Biharilal Mandhana, former Executive Director, and others were involved in the loan fraud.

The firm was first granted credit facilities by the Bank of Baroda in 2008. However, the firm's account became a non-performing asset in 2016.
Subsequently, the bank conducted a forensic audit, which revealed irregularities by the firm and its officials, including the diversion of funds to settle other debts and the discovery of a few fictitious purchases.
The bank then approached the CBI to file a case. After verifying the facts, the CBI filed an FIR and is currently investigating the matter.