Dairy firm Kwality, ex-promoter booked in Rs 1,400 crore bank fraud case

The Central Bureau of Investigation (CBI) has registered a case 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 today 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.

It has been alleged 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.

Kwality Ltd has been undergoing insolvency proceedings since December 2018. It owes over Rs 2,000 crore to financial and operational creditors.

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