CBI books private firm, directors in ₹12.72 crore bank loan fraud case

The CBI has filed a case against Jaylon Impex India for a ₹12.72 crore bank fraud involving Indian Bank, accusing it of misusing loan funds.

MUMBAI: The Mumbai unit of the Central Bureau of Investigation has registered a case against a private company and its directors in connection with an alleged ₹12.72 crore bank fraud involving public-sector Indian Bank.

CBI books private firm, directors in ₹12.72 crore bank loan fraud case

According to the CBI’s first information report (FIR), Jaylon Impex India Private Limited and its directors are accused of fraudulently securing credit facilities from the bank through misrepresentation and diverting loan proceeds for purposes other than those sanctioned. The loan account turned into a non-performing asset (NPA) in June 2018, and the bank subsequently reported it as a fraud to the Reserve Bank of India in June 2020.

The case was registered on December 31, 2025, following a complaint by the deputy general manager of the bank’s Stressed Assets Management Branch in Mumbai. The complaint alleged that the borrower firm and its directors, in criminal conspiracy with unknown bank officials and private individuals, cheated e-Allahabad Bank—now merged with Indian Bank—of ₹12.72 crore, apart from related expenses and uncharged interest.

The CBI has invoked provisions of the Indian Penal Code and the Prevention of Corruption Act pertaining to criminal conspiracy, cheating, forgery of valuable securities and documents, forgery for the purpose of cheating, use of forged documents or electronic records as genuine, and criminal misconduct by a public servant.

As per the agency, the alleged conspiracy took place between 2011 and 2018. During this period, the accused are alleged to have availed loans by misrepresenting financial data and later diverted funds disbursed under the sanctioned credit facilities.

The FIR further states that the borrower firm submitted false documents, including stock statements, to obtain the loans, and subsequently misappropriated the funds, causing a wrongful loss of ₹12.72 crore to the bank and corresponding wrongful gains to the accused.