CBI files fraud case against Chandra Proteco and its directors over ₹210 crore loss

CBI registered an FIR on Thursday against Chandra Proteco Limited and its directors for an alleged bank fraud causing a loss of ₹210.13 crore to five banks, including Indian Bank. The FIR stemmed from a complaint lodged by Indian Bank, which claims the company and its directors Ranjeet Gupta, Anilesh Gupta and Aparna Gupta conspired with unknown public servants and other persons to cheat the banks. Investigators say the accused obtained cash‑credit facilities, term loans and letters of credit totalling ₹541.46 crore from a consortium of six banks led by Indian Bank. The company is alleged to have run covert accounts with banks outside the consortium and to have routed letters of credit through entities that share common directors or are sister concerns. CBI officials state that the funds were not used for the sanctioned purposes and were siphoned off through associate companies, causing the banks to incur the reported loss. In parallel, the agency conducted searches at several premises linked to the directors in Prayagraj and seized financial documents related to the case. The CBI spokesperson emphasized that the investigation will examine the alleged systematic financial manipulations and the role of the unnamed public servants. The case highlights concerns over corporate misuse of bank credit and the need for stricter oversight of loan approvals.

Context

Large‑scale frauds involving multiple banks often trigger wider regulatory scrutiny, as authorities aim to prevent similar schemes that exploit loopholes in loan and credit processes.