CBI registers ₹210 crore fraud case against Chandra Proteco, raids Prayagraj
Synopsis
The CBI has booked three directors of Chandra Proteco Limited for allegedly defrauding a six-bank consortium of ₹210 crore by diverting sanctioned funds through sister concerns and clandestine accounts. On the same day, the agency also raided Mumbai premises in a separate ₹58.48 crore SBI fraud case against Avaya Industries — signalling a coordinated single-day enforcement action across two states.
Key Takeaways
The CBI registered a ₹210 crore bank fraud case against Chandra Proteco Limited on 29 October 2026 on a complaint by Indian Bank .
Directors Ranjeet Gupta , Anilesh Gupta , and Aparna Gupta booked for criminal conspiracy, cheating, and offences under the Prevention of Corruption Act .
The alleged fraud involved a total credit exposure of ₹541.46 crore from a six-bank consortium ; funds were allegedly diverted through associate companies.
CBI seized ledgers and incriminating documents during searches at multiple premises in Prayagraj, Uttar Pradesh .
In a separate action, the CBI raided Mumbai locations in a ₹58.48 crore fraud case against Avaya Industries filed on complaint by State Bank of India .
Investigations in both cases are ongoing to identify all involved persons, including public servants.
The Central Bureau of Investigation (CBI) on Thursday, 29 October 2026, registered a fraud case against Chandra Proteco Limited (CPL) and its directors following a complaint by Indian Bank's Stressed Asset Management Branch, alleging a ₹210 crore bank fraud spanning a consortium of six banks. The agency subsequently conducted searches at multiple premises linked to the company's directors in Prayagraj, Uttar Pradesh.
Who Has Been Booked
The CBI has named three directors of Chandra Proteco Limited — Ranjeet Gupta, Anilesh Gupta, and Aparna Gupta — along with unidentified public servants and private individuals. They have been booked for criminal conspiracy, cheating, and offences under the Prevention of Corruption Act, according to an official statement.
How the Alleged Fraud Was Carried Out
According to the complaint, the accused allegedly entered into a criminal conspiracy to secure a Cash Credit facility, Term Loan, and Letters of Credit totalling ₹541.46 crore from a six-bank consortium led by Indian Bank. The CBI alleged that CPL engaged in systematic financial manipulations, including operating clandestine accounts with non-consortium banks and devolving letters of credit through entities sharing common directors or sister concerns.
The agency further alleged that the company diverted funds — rather than deploying them for the sanctioned purposes — by siphoning them off through associate companies, causing wrongful losses to the lending institutions. Notably, the gap between the total credit facility of ₹541.46 crore and the declared fraud quantum of ₹210 crore suggests investigators are still quantifying the full extent of the alleged diversion.
What Was Found During the Raids
Following registration of the case, the CBI carried out simultaneous searches at several premises connected to the directors of CPL in Prayagraj. Investigators recovered and seized ledgers from the relevant period along with other documents described as incriminating. The probe agency said investigation is continuing to establish the full scope of the conspiracy, identify all involved persons — including any public servants — and trace the end-use of the loan funds.
A Separate ₹58 Crore Fraud Case in Mumbai
In a related development on the same day, the CBI conducted search operations at several locations in Mumbai in connection with an alleged ₹58.48 crore bank fraud by Avaya Industries, a Mumbai-based company. The case was registered on a complaint by State Bank of India (SBI), Mumbai, against Avaya Industries, its directors, and unknown public and private persons. The complaint alleges that Avaya Industries and its directors fraudulently obtained credit facilities through misrepresentation, causing a wrongful loss of ₹58.48 crore to SBI. Incriminating documents were seized during those searches as well.
Broader Context
Both cases are part of a sustained push by the CBI to pursue large-value bank fraud referrals from public sector lenders, following Reserve Bank of India directives to classify and report stressed accounts above a threshold. Bank fraud cases of this nature — involving consortium lending, fund diversion through sister concerns, and devolvement of letters of credit — have been a recurring pattern in CBI referrals over the past several years, underscoring persistent vulnerabilities in credit monitoring by public sector banks. The outcome of the ongoing investigation, particularly the identification of any public servants allegedly involved, will be closely watched.
Point of View
Routes money through sister concerns, and devolves letters of credit before any single bank can act. The fact that the total sanctioned exposure was ₹541.46 crore while the declared fraud is ₹210 crore means the probe is far from complete. More telling is the mention of unidentified public servants — a thread that, if pulled, could implicate branch-level officials in sanctioning or overlooking the irregularities. Public sector banks have faced repeated criticism for inadequate real-time credit monitoring; until lender consortia share granular transaction data in near real-time, these diversions will continue to surface years after the damage is done.
NationPress
29 Oct 2026
Frequently Asked Questions
What is the CBI case against Chandra Proteco Limited?
The CBI has registered a case alleging that Chandra Proteco Limited and its directors defrauded a consortium of six banks, led by Indian Bank, of ₹210 crore by diverting sanctioned loan funds through associate companies and operating clandestine accounts. Three directors — Ranjeet Gupta, Anilesh Gupta, and Aparna Gupta — have been booked for criminal conspiracy, cheating, and Prevention of Corruption Act offences.
Why did the CBI conduct raids in Prayagraj?
Following registration of the fraud case, the CBI searched multiple premises linked to Chandra Proteco Limited's directors in Prayagraj, Uttar Pradesh. During the searches, investigators recovered and seized ledgers and other incriminating documents relevant to the case.
How much money did Chandra Proteco allegedly borrow from the banks?
The company allegedly obtained Cash Credit facilities, Term Loans, and Letters of Credit totalling ₹541.46 crore from a six-bank consortium led by Indian Bank. The declared fraud quantum stands at ₹210 crore, with the investigation still ongoing to determine the full extent of the diversion.
What is the separate CBI case against Avaya Industries?
On the same day, the CBI conducted searches in Mumbai in connection with an alleged ₹58.48 crore bank fraud by Avaya Industries, a Mumbai-based company. The case was filed on a complaint by State Bank of India, which alleges Avaya Industries obtained credit facilities through misrepresentation.
What happens next in the Chandra Proteco investigation?
The CBI has said the investigation is continuing to establish the full scope of the conspiracy, identify the roles of all involved individuals including public servants, and trace the end-use of the loan funds. Further arrests or charge sheets are possible as the probe progresses.
