CBI raids 7 locations in Mumbai, Ahmedabad over ₹119 crore bank fraud
Synopsis
The CBI raided seven locations across Mumbai and Ahmedabad in a single operation targeting two separate alleged bank frauds — one against Punjab National Bank for ₹61.98 crore and another against SBI for ₹57.05 crore. The near-identical modus operandi in both cases — fake accounts, fund diversion, related-party payments — points to a systemic vulnerability in how public sector banks monitor mid-size borrowers after loan disbursal.
Key Takeaways
The CBI raided seven locations in Mumbai and Ahmedabad on 21 May 2025 in two separate bank fraud cases.
M/s Shri Hari Extrusion Pvt.
Ltd. is accused of defrauding Punjab National Bank of ₹61.98 crore through loan diversion and related-party payments.
M/s Jay Formulations Ltd. allegedly defrauded State Bank of India of ₹57.05 crore using false books of accounts.
The combined alleged loss to public sector banks stands at ₹119.03 crore .
Incriminating documents were seized; further investigation is ongoing in both cases.
The Central Bureau of Investigation (CBI) on 21 May 2025 conducted searches at seven locations across Mumbai and Ahmedabad in connection with two separate bank fraud cases, allegedly causing a combined loss of ₹119.03 crore to public sector banks. The raids targeted premises linked to directors of M/s Shri Hari Extrusion Pvt. Ltd. and M/s Jay Formulations Ltd., officials said.
How the Raids Were Conducted
The searches were carried out after the CBI obtained warrants from designated courts in both cities. Investigators raided the residential premises of company directors — not just business addresses — signalling the agency's focus on personal accountability in the alleged diversion of funds. Several incriminating documents were seized during the operation and are currently under examination.
Case 1: Punjab National Bank Fraud of ₹61.98 Crore
In the first case, the CBI has booked accused persons linked to M/s Shri Hari Extrusion Pvt. Ltd. for allegedly defrauding Punjab National Bank (PNB) of ₹61.98 crore. According to investigators, the company availed cash credit and term loan facilities from the bank and subsequently misused the sanctioned funds. The alleged modus operandi included diverting money through unsecured loans, routing transactions through sister concerns, bypassing the lender bank for sales proceeds, and making payments to related parties. Search warrants in this case were issued by the Special Judge for CBI cases in Mumbai.
Case 2: State Bank of India Fraud of ₹57.05 Crore
The second case involves M/s Jay Formulations Ltd., which allegedly defrauded the State Bank of India (SBI) of ₹57.05 crore. Investigators allege that the company secured fund-based and non-fund-based credit facilities by submitting false books of accounts. Once the credit was sanctioned, the accused allegedly diverted the loan funds, causing substantial losses to the bank. Searches at residential premises of the company's directors were conducted following warrants issued by a court in Ahmedabad.
Pattern and Broader Context
This comes amid a sustained CBI push against bank loan fraud, which remains one of the largest contributors to non-performing assets in India's public sector banking system. Notably, both cases follow a near-identical pattern: loans availed on allegedly falsified credentials, funds diverted to related entities, and sales proceeds kept off the lender bank's books — a template investigators have flagged repeatedly in similar cases. The combined alleged loss of ₹119.03 crore across just two firms underscores the scale at which mid-size borrowers can erode public bank capital.
What Happens Next
The CBI has confirmed that further investigation in both matters is underway. The seized documents are expected to guide the next phase of the probe, which may include arrests or additional charge sheets depending on what the records reveal. Both cases are being monitored by designated special courts.
Point of View
Sales bypassing the lender bank, and falsified accounts — yet the banks reportedly did not detect the irregularities until significant losses had accumulated. That is the uncomfortable question mainstream coverage sidesteps: the CBI can raid after the fact, but the real accountability gap lies in lender-side due diligence and post-disbursement monitoring. With public sector banks still carrying heavy NPA loads, the systemic failure here is not just the borrower's alleged fraud — it is the credit oversight architecture that allowed ₹119 crore to walk out the door undetected.
NationPress
12 Aug 2026
Frequently Asked Questions
What are the two bank fraud cases the CBI is investigating?
The CBI is probing two separate cases: one involving M/s Shri Hari Extrusion Pvt. Ltd., accused of defrauding Punjab National Bank of ₹61.98 crore, and another involving M/s Jay Formulations Ltd., accused of defrauding State Bank of India of ₹57.05 crore. The combined alleged loss stands at ₹119.03 crore.
Where did the CBI conduct its searches?
The CBI conducted searches at seven locations across Mumbai and Ahmedabad on 21 May 2025. The raids targeted residential premises of the directors of the two accused companies, following warrants issued by designated courts in both cities.
How did the accused allegedly carry out the bank fraud?
In the first case, the accused allegedly diverted funds through unsecured loans, transactions with sister concerns, and payments to related parties while avoiding routing sales through the lender bank. In the second case, the accused allegedly submitted false books of accounts to obtain credit facilities and then diverted the sanctioned funds.
What was seized during the CBI raids?
Investigators seized several incriminating documents during the searches. These are currently being examined as part of the ongoing investigation in both cases.
What happens next in the CBI investigation?
The CBI has confirmed that further investigation is underway in both matters. Depending on the analysis of seized documents, the probe could lead to arrests or additional charge sheets. Both cases are being monitored by designated special courts.
