A First Information Report or FIR was filed against the directors of the oil firm.
A CBI team on Saturday raided multiple locations in Madhya Pradesh's Morena over a bank fraud case, involving an oil firm. A First Information Report or FIR was filed against the directors of the oil firm - KS Oils Limited - in the alleged Rs 983 loan scam.
Searches were carried out in Delhi too. The firm has manufacturing plants in Morena, Ratlam and Guna in Madhya Pradesh, Kota in Rajasthan and West Bengal's Haldia.
Two directors of the firm - Saurabh Garg and Devesh Agarwal - are named in the complaint.
An official release of the CBI, spokespeson RK Gaur said: "It was alleged that the forensic audit findings indicated that the financials of the company, while applying for loan, were inflated, and that the loan amount was misappropriated through fraudulent diversion."
"Financials of the oil firm were inflated. In 2015, banks tried to recover their loss by auctioning their assets under the SARFAESI Act but failed due to unsatisfactory response to the bidding process," it added.
The factory and the registered office of the company in Morena, residences of Ramesh Chandra Garg and another director Saurabh Garg and the company's office in Delhi's Barakhamba Road were searched by the agency on Friday, officials said.
The loan fraud is linked to the State Bank of India.