The CBI carried out searches on the premises of the Bulandshahr-based Santosh Overseas Limited and its director Sunil Mittal on Thursday in connection with a fraud of Rs 424.07 crore alleged by a consortium of seven banks led by the IDBI bank, officials said.
The searches took place in Bulandshahr in Uttar Pradesh and Delhi, they added.
The probe agency has booked the company and Mittal in connection with a complaint from the consortium of banks, alleging that they were defrauded to the tune Rs 424.07 crore, the officials said.
"It was alleged that the borrower company had availed packing credit from the banks on a fake purchase order from an associate concern. It was further alleged that the company was maintaining current accounts with non-consortium banks and the sale proceeds were routed through these accounts without the knowledge of consortium members," CBI Spokesperson RK Gaur said.
The Central Bureau of Investigation (CBI) has alleged that heavy transactions were made by the company with related parties who did not have TIN registration etc.
"Searches were conducted on Thursday at the premises of the accused at Delhi and Bulandshahr, which led to the recovery of certain incriminating documents and material," Gaur said.