Key Points :
- Kwality’s Wall’s directors have been charged with cheating , criminal conspiracy and corruption.
- CBI conducted raids at eight different locations.
- The case has been registered by The Central Bureau of Investigation (CBI).
Kwality’s Wall’s directors have been charged with cheating , criminal conspiracy and corruption by a group of 10 banks led by Bank of India, constituted in 2012.
The CBI has named Kwality Ltd’s ex-promoter Sanjay Dhingra too , and other company executives in the case.
The case has been registered by The Central Bureau of Investigation (CBI) against Delhi based private sector dairy company Kwality Ltd, its ex-promoters Sanjay Dhingra and other executives of the company on a complaint from Bank of India for causing an alleged loss of Rs 1,400.62 crore to a consortium of banks led by the lender.
CBI conducted raids at eight different locations including in Delhi, Saharanpur, Bulandshahr (Uttar Pradesh), Ajmer (Rajasthan), Palwal (Haryana), etc, which included the premises of the company and other accused ones.
It has been mentioned allegedly in the complaint that the accused had cheated the Bank of India-led consortium comprising Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI Bank, Central Bank of India, Dhanlaxmi Bank and Syndicate Bank to the tune of approximately Rs 1,400.62 core by way of diversion of bank funds, sham transactions with related parties, fabricated documents and receipts, falsified books of accounts, creating false assets and liabilities, etc.
“The forensic audit of the accounts showed that out of the total sale of ₹ 13,147.25 crore made by the company, only 7,107.23 crore were routed through the consortium of banks. (Kwality) overstated its financial statements by bloating its business operations and indulged in manipulation of accounts by making reverse entries,” the bank said in its complaint.
The CBI said Kwality is accused of the crime related to the cheating with the banks by “diversion of bank funds, sham transactions with related parties, fabricated documents or receipts and falsified books of accounts” and creating false assets and liabilities.
CBI spokesperson RK Gaur said, according to Press Trust of India,
“It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising Bank of India, Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanalaxmi Bank, Syndicate Bank to the tune of Rs.1400.62 core” .
Other than Delhi, the CBI also carried out searches in Saharanpur and Bulandshahr in Uttar Pradesh, Ajmer in Rajasthan and Palwal in Haryana.
Kwality Ltd has been undergoing insolvency proceedings since December 2018. It owes over Rs 1,990 crore to financial and operational creditors. The company was dragged too , in bankruptcy court by global equity giant KKR.
