CBI books five directors of Mumbai firm in ₹133 crore SBI fraud case
Synopsis
The CBI has booked five directors of Mumbai-based Furnace Fabrica (India) Ltd for allegedly defrauding SBI of ₹133.52 crore through false financial disclosures and fund diversion. Searches in Mumbai and Cochin have already yielded incriminating documents — and a parallel ₹30.63 crore PNB fraud case signals the agency is running simultaneous corporate fraud operations.
Key Takeaways
The CBI registered a case against five directors of Furnace Fabrica (India) Ltd on the complaint of State Bank of India over an alleged fraud of ₹133.52 crore .
Directors named in the FIR: A.R.
Basheeruddin , Badri Prasad , Nezee Basheeruddin , Raiz Basheeruddin , and Sanam Basheer .
The accused allegedly submitted false financial information to obtain higher credit facilities and subsequently diverted the funds.
Searches were conducted at multiple premises in Mumbai and Cochin ; incriminating documents were seized.
In a separate case registered on 7 July , the CBI is also probing a ₹30.63 crore fraud involving Punjab National Bank and another Mumbai-based communications company.
The Central Bureau of Investigation (CBI) has registered a case against five directors of Furnace Fabrica (India) Ltd, a Mumbai-based company, along with unknown public servants and private individuals, over an alleged bank fraud of ₹133.52 crore to the State Bank of India (SBI). The case was registered on Thursday on the complaint of SBI's Stressed Assets Management Branch, Mumbai, and searches were subsequently conducted at multiple premises linked to the accused in Mumbai and Cochin.
Directors Named in the FIR
The five directors of Furnace Fabrica (India) Ltd named in the CBI's First Information Report are A.R. Basheeruddin, Badri Prasad, Nezee Basheeruddin, Raiz Basheeruddin, and Sanam Basheer. The agency has also named unknown public servants and private persons as part of the alleged criminal conspiracy.
How the Fraud Was Allegedly Carried Out
According to the complaint filed by SBI, the accused allegedly entered into a criminal conspiracy to obtain higher credit facilities from the bank by submitting false financial information. It is further alleged that the sanctioned loan funds were subsequently diverted or siphoned off for purposes other than those for which they were approved, causing a wrongful loss of ₹133.52 crore to the bank.
During the searches conducted at premises linked to the directors in Mumbai and Cochin, investigators reportedly seized incriminating documents that shed light on the modus operandi of the accused. The CBI stated that the probe is continuing to determine the full extent of the conspiracy, identify the roles of all individuals involved — including public servants — and trace the end use of the loan funds.
A Separate Bank Fraud Case Also Under Probe
This development comes alongside a separate CBI action earlier in the week. On Tuesday, the agency conducted searches at premises linked to another Mumbai-based communications company and its directors in connection with an alleged bank fraud of ₹30.63 crore involving Punjab National Bank (PNB). That case was registered on 7 July, based on a complaint from PNB.
In that instance, the accused allegedly obtained higher cash credit facilities from PNB and other consortium member banks by submitting inflated debtor figures and other false financial information, according to the complaint. The CBI registered that case against the company's directors, along with unknown public servants and private persons.
Broader Context: CBI's Crackdown on Bank Fraud
The back-to-back actions reflect the CBI's intensified focus on corporate bank fraud cases, particularly those involving SBI and PNB — two of India's largest public sector lenders. Notably, both cases follow a familiar pattern: alleged submission of inflated or fabricated financial data to secure credit facilities, followed by diversion of funds. India's banking sector has grappled with rising non-performing assets (NPAs) linked to such frauds over the past decade, prompting regulators and investigative agencies to pursue more proactive enforcement. The investigation in the Furnace Fabrica case remains ongoing.
Point of View
Higher credit facilities, diverted funds. That the CBI is running two such Mumbai-linked corporate fraud probes simultaneously points to a systemic gap in how public sector banks conduct due diligence on credit applications. The inclusion of 'unknown public servants' in both FIRs is the detail that deserves closer scrutiny — it signals potential insider facilitation, yet rarely results in named chargesheet entries at the same pace as the private accused. Whether the probe moves beyond the directors to the bank officials who cleared these facilities will be the real test of this investigation's reach.
NationPress
10 Jul 2026
Frequently Asked Questions
What is the CBI case against Furnace Fabrica (India) Ltd?
The CBI has registered a fraud case against five directors of Furnace Fabrica (India) Ltd, a Mumbai-based company, for allegedly causing a wrongful loss of ₹133.52 crore to the State Bank of India. The accused are alleged to have obtained higher credit facilities by submitting false financial information and then diverting the sanctioned funds.
Who are the directors named in the CBI FIR?
The five directors named in the FIR are A.R. Basheeruddin, Badri Prasad, Nezee Basheeruddin, Raiz Basheeruddin, and Sanam Basheer. Unknown public servants and private persons are also named as part of the alleged criminal conspiracy.
Where did the CBI conduct searches in this case?
The CBI conducted searches at multiple premises linked to the company's directors in Mumbai and Cochin. Incriminating documents were seized during the searches, which the agency says shed light on the modus operandi of the accused.
Is there a separate bank fraud case the CBI is also investigating?
Yes. On 7 July, the CBI registered a separate case involving a Mumbai-based communications company and its directors for allegedly defrauding Punjab National Bank and consortium member banks of ₹30.63 crore. Searches in that case were conducted on Tuesday.
What happens next in the Furnace Fabrica investigation?
The CBI has stated that the investigation is continuing to establish the full extent of the conspiracy, identify the roles of all individuals involved — including public servants — and trace how the loan funds were ultimately used. Further arrests or chargesheets are possible as the probe progresses.
