CBI books Gwalior-based firm for bank fraud

The Central Bureau of Investigation has booked Gwalior-based B.P. Food Products Private Limited and others for allegedly cheating the IDBI Bank, causing it a loss of more than ₹53 crore.

Among those named as accused in the FIR are Ravi Prakash Bansal and Rekha Bansal. The company had got credit facilities under a consortium arrangement. The IDBI Bank had sanctioned ₹25 crore, State Bank of India ₹20 crore, Ratnakar Bank ₹11.29 crore and Kotak Mahindra Bank ₹5 crore. Additional loans were provided for working capital.

According to the FIR, the company started facing financial problems in 2016-17 due to various factors, including lower wheat production and cheaper imported wheat from Ukraine. It shut operations in all the units after August 2017. Consequently, it defaulted on its repayment obligations.

The IDBI Bank declared the company’s loan account a non-performing asset in February 2018 when the outstanding stood at ₹42.95 crore. The amount went up to ₹53.43 crore in July 2019.

Preliminary enquiries revealed that the company’s inventory was illegally removed. The funds were siphoned off through various ways, including debit balance write-offs.

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