The CBI action came on a complaint from the SBI.
The CBI has filed a case against Hyderabad-based Nandini Industries India Pvt Ltd (NIIPL) along with its Managing Director Haridass Ramesh in alleged fraud of Rs 218.21 crore in State Bank of India, officials on Wednesday said.
It is alleged that the accused diverted loan proceeds through subsidiary companies by submitting inflated invoices, they said.
The agency carried out searches at three locations leading to the recovery of "incriminating documents", CBI Spokesperson RC Joshi said.
It is alleged that the company, earlier known as TSS Projects and Industries Pvt Ltd engaged in chemical exports, started availing credit facilities from Secunderabad branch of the SBI in 2007 with an initial sanction of Rs 9.5 crore.
Over a year, total credit facilities reached to the tune of Rs 89.50 crore, they said.
"The loan account was declared as NPA in March 2014 due to non-payment of dues to the State Bank of India.
"Out of the total limits, an amount of Rs 54.21 crore (approx) was outstanding as on NPA date (March 30, 2014). The said amount increased to Rs 172.71 crore (approx) as on November 30, 2019 and to Rs 218.21 crore (approx) as on March 31, 2021 including interest," Joshi said.
The CBI action came on a complaint from the SBI which had declared the account as fraud after the forensic audit.
The audit showed that the company did not have the financial discipline and had complicated accounting practices, the bank said.
"The company entered into related party transactions and many transactions with one major customer Desa Techno Expert gmbh," SBI said in its complaint.
"Any payments to related parties without specific purpose amount to diversion of funds. Further, the company with a mala fide intention did not take any step to realize the money from group companies, particularly when the company was in difficult times," it alleged.
It said that the company carried out transactions in banks other than SBI having a turnover of Rs 117.64 core without any approval from it.
"This indicates mala fide intention of the promoters to cause loss to the bank and gain unlawfully.
"Many irregularities have been committed like over-invoicing, inflated sales, and utilization of funds for unrelated purpose etc, to defraud the Bank," it alleged.
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