MUMBAI: The Central Bureau of Investigation (CBI) has booked a metal firm in an alleged ₹61.13-crore bank fraud case after it defaulted on loans taken from a consortium of banks led by public sector Union Bank of India (UBI). It also allegedly diverted loan proceeds for non-sanctioned purposes.
Transactions made by the accused firm, Chhattisgarh-based Laxmiroop Pvt Ltd, with the consortium from 2023 to 2025 are under the CBI’s scanner. The consortium allegedly defrauded by the firm includes Federal Bank.
Due to non-payment, the firm’s loan account was classified as a non-performing asset (NPA) on February 26, 2025, by UBI. The loan account was further reported as “fraud” by Federal Bank on June 16, 2025, to the Reserve Bank of India, while UBI did the same on September 23, 2025.
The first information report (FIR) regarding the alleged fraud was registered by the CBI’s Mumbai unit on February 13, based on a complaint against the firm and its directors from a deputy general manager at UBI. The FIR was lodged under sections of the Indian Penal Code and the Prevention of Corruption Act pertaining to criminal conspiracy, cheating and misconduct.
According to the complaint, the firm allegedly fraudulently availed credit facilities. It allegedly submitted fictitious stock statements to the banks to avail the sanctioned cash credit limits and for higher drawing power in comparison to actual eligibility. The complaint also alleged that the accused persons diverted and utilised the disbursed funds for purposes other than purpose for which the funds were sanctioned.
{{/usCountry}}According to the complaint, the firm allegedly fraudulently availed credit facilities. It allegedly submitted fictitious stock statements to the banks to avail the sanctioned cash credit limits and for higher drawing power in comparison to actual eligibility. The complaint also alleged that the accused persons diverted and utilised the disbursed funds for purposes other than purpose for which the funds were sanctioned.
{{/usCountry}}The complaint said the firm and four of its directors, in conspiracy with unknown public servants and private individuals, allegedly misappropriated bank funds, causing wrongful loss of ₹61.13 crore to the consortium and corresponding wrongful gains to themselves.
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