The Central Bureau of Investigation (CBI) has taken action against Varun Industries, filing two separate cases related to a bank fraud exceeding Rs 388 crore. Officials made this announcement on Wednesday. These cases stem from complaints lodged by Central Bank of India and Canara Bank. The CBI has registered a First Information Report (FIR) targeting the company, along with its promoters and directors Kailash Agarwal and Kiran Mehta.
CBI Initiates Action Against Varun Industries
Canara Bank’s Allegation: According to officials, Canara Bank has experienced a financial loss of Rs 118.88 crore, while Central Bank of India’s loss stands at Rs 269.29 crore due to the alleged fraud. The FIR filed based on Canara Bank’s complaint suggests that Varun Industries utilized the Packing Credit Limit (PCL) facility for unauthorized activities. The company’s primary dealings with Dubai-based entities, Al Red International Trading and White Impex General Trading LLC, come under scrutiny.
Allegations by Canara Bank and Central Bank of India
Central Bank of India’s Allegation: Central Bank of India’s accusation centers on the company’s failure to fulfill liabilities associated with transferred debentures and other commitments. Despite personal guarantees offered by Kiran N Mehta and Kailash S Aggarwal, the company allegedly defaulted on April 17, 2012, resulting in an outstanding amount of Rs 269.29 crore. Following RBI guidelines, the account has been categorized as a Non-Performing Asset (NPA).
