The Central Bureau of Investigation (CBI) registers a case against Chandra Proteco Limited and its directors in connection with an alleged bank fraud involving loan facilities and letters of credit, and carries out searches linked to the accused. The CBI alleges the company used complex financial arrangements to obtain and manage credit while allegedly diverting funds and causing wrongful losses to banks.
According to the CBI, the case is based on a complaint by Indian Bank and involves cheating and offences under the Prevention of Corruption Act, with a claimed wrongful loss of Rs 210.13 crore. The agency says the group obtained cash credit facilities, term loans and letters of credit amounting to Rs 541.46 crore from a consortium of six banks led by Indian Bank, and that it allegedly operated “clandestine accounts” with non-consortium banks and devolved letters of credit through entities linked by shared directors or sister concerns.
Outlets also mention that the CBI searches premises associated with the directors, in Prayagraj, and the broader investigation is continuing to determine the extent of the alleged conspiracy, roles of individuals including public servants, and the end use of funds. One outlet’s separate report focuses on a different CBI fraud case involving alleged losses to SBI in Pune, with searches at media-related premises.
