CBI registers case against MD, directors of oil company for alleged bank loan fraud

The raids were carried out at the factory and registered offices of the company in Morena, residences of Garg and another director Saurabh Garg and an office in New Delhi.

A CBI team carried out raids at five places in Morena and Delhi on Saturday after registering a case against the managing director, promoter and directors of KS Oils Ltd of Morena for allegedly committing a loan fraud of ₹938 crore with the State Bank of India, a CBI official said.

A case has been registered against managing director Ramesh Chandra Garg, director Saurabh Garg and director Devesh Agrawal. (Image used for representation).(PTI PHOTO.)

A case has been registered against managing director Ramesh Chandra Garg, director Saurabh Garg and director Devesh Agrawal.

The raids were carried out at the factory and registered offices of the company in Morena, residences of Garg and another director Saurabh Garg and an office in New Delhi.

CBI, Delhi, public relations officer RK Gaur said, “It was alleged that the findings of the forensic audit indicated that the financials of the company while applying for loan facilities were inflated. It was further alleged that the loan amount was misappropriated through fraudulent diversion.”

Earlier in 2013, Income Tax officers had also raided the office and factory of this company following reports of tax evasion by the firm.