Dairy Maker Kwality Charged By CBI With Rs.1,400 Crore Bank Loan Fraud

Tuesday, 22 September 2020Newsdesk

Kwality Limited, one of the country's most popular dairy product makers, has been charged with cheating a group of banks of Rs. 1,400 crore in a case of fraud filed by the CBI. The investigating agency filed the case after searches at eight locations including Delhi on Monday. Those named by the CBI include Kwality's directors Sanjay Dhingra, Siddhant Gupta and Arun Srivastava. They have been charged with cheating, forgery, criminal conspiracy and corruption by a consortium of 10 banks led by Bank of India, constituted in 2012.

New Delhi, 22 September 2020

As per news report of NDTV, the CBI started its investigations on a complaint by Bank of India, which alleged that Kwality Ltd had taken credit from the bank since 2010 but started defaulting on payments in early 2018. The account was classified as a non-performing asset in August 2018, it said. "The forensic audit of the accounts showed that out of the total sale of Rs. 13,147.25 crore made by the company, only 7,107.23 crore were routed through the consortium of banks. (Kwality) overstated its financial statements by bloating its business operations and indulged in manipulation of accounts by making reverse entries," the bank said in its complaint.

Source -NDTV