The CBI on Tuesday carried out searches at six locations after registering an FIR against Mehsana-based Vimal Oil and its directors in an alleged fraud of Rs 678.93 crore in Bank of India, officials said.
Teams of the Central Bureau of Investigation (CBI) conducted the searches at premises of the company and the accused in Ahmedabad and Mehsana in Gujarat.
Besides the company, the agency has named as accused its directors Jayeshbai Chandubhai Patel, Mukeshkumar Naranbhai Patel, Ditin Narayanbhai Patel and Mona Jigneshbhai Acharya in its FIR, the officials said.
"It was alleged that the accused were sanctioned various credit facilities amounting to Rs. 810 crore (approx) by a consortium of Bank of India (lead bank) and eight member banks," CBI spokesperson RC Joshi said.
It has been further alleged that the accused have cheated the consortium banks during the period 2014-2017 through malafide activities, Mr Joshi said.
It is alleged that directors indulged in activities such as diversion of loan funds; conducting majority of sale transactions with certain selective parties, which were accommodative in nature and maintaining bank accounts outside consortium member banks, the spokesperson said in a statement.
The directors are accused of transacting sales with such parties which were not in activities of trading of edible oil or manufacturing, purchasing material at inflated invoice prices and routing of revenue proceeds in the bank accounts outside the consortium banks, Mr Joshi said.