CBI Registers Case Against S Kumars for Rs 1,245 Crore Fraud, Raids 13 Locations

According to the agency, promoters/directors of the company allegedly misused or diverted funds received from a consortium of banks between 2012 and 2018, which resulted in a loss of about Rs 1,245.15 crore.

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New Delhi: The CBI has registered a case against textiles major S Kumars Nationwide Limited (SKNL) and 14 people, including its promoters and directors for an alleged bank fraud worth Rs 1,245 crore, officials said Wednesday.

Following the registration of the FIR, the central agency on Wednesday searched 13 locations in Maharashtra, Gujarat and West Bengal linked to the accused and recovered “incriminating documents”, CBI spokesperson R.C. Joshi said.

He said the company was engaged in the business of manufacturing high-value fine cotton fabrics and home textiles.

The company had availed credit from a consortium of banks led by IDBI bank.

Joshi said promoters/directors of the company were booked for allegedly “misusing/diverting the bank funds during the period 2012 to 2018” which resulted in a loss of about Rs 1,245.15 crore to the banks.

“The complaint was filed by the IDBI Bank Ltd. and also on behalf of four other member banks of the consortium, namely, Central Bank of India, The Jammu & Kashmir Bank Ltd., Punjab National Bank and Indian Bank,” he said.