KOLKATA – The Bank Securities and Fraud Branch (BS&FB) of the Central Bureau of Investigation (CBI) in Kolkata has registered a First Information Report (FIR) against M/s Kute Sons Dairys Ltd and its directors for allegedly defrauding Bank of Baroda of approximately ₹192.56 crore.
The FIR, filed on January 14, 2026, follows a formal complaint from the bank’s Zonal Office Stressed Asset Recovery Branch (ZOSARB) in Pune, Maharashtra.
Case Background and Allegations
The investigation targets the company, formerly known as M/s Swaraj India Industries Limited, and its primary directors, Suresh Dnyanobarao Kute and Archana Suresh Kute. The alleged fraud was perpetrated through a complex web of misrepresentation and financial irregularities starting as early as 2019.
According to the complaint, the following irregularities were discovered:
- Fabricated Financials: Suresh Kute allegedly submitted fake net-worth certificates in 2019 to secure and continue credit facilities.
- Concealment of Interests: The directors failed to disclose their controlling positions in the Dnyanradha Co-operative Multi-State Credit Society, a fact only revealed during a 2025 internal bank investigation.
- Siphoning and Diversion: Funds were allegedly diverted through multiple sister concerns and personal saving accounts.
- Proceeds of Crime: Investigation by the Enforcement Directorate (ED) suggests that the company itself was acquired using funds diverted from the co-operative society, characterizing the acquired assets as “Proceeds of Crime”.
- Double Mortgaging: The accused allegedly mortgaged the same properties to three different co-operative banks (MSCB, TDCB, and Mumbai District Central Co-op Bank) without obtaining a No Objection Certificate (NOC) or informing Bank of Baroda.
- Government Compensation Theft: The borrower allegedly received compensation from the Maharashtra government for land acquired for road widening but failed to inform the bank or deposit the funds, despite the bank holding a charge on the land.
Forensic Audit and Internal Investigation
The account was marked as a Red Flag Account (RFA) in early 2023. While an initial forensic audit by M/s SKVM & Company was inconclusive due to non-cooperation from the borrower, a subsequent 2025 internal investigation confirmed the siphoning of funds. The bank officially declared the account as “Fraud” on May 2, 2025.
More Read
Current Legal Status
The directors, Suresh and Archana Kute, are currently incarcerated. Suresh Kute was arrested in 2023 by the Economic Offence Wing (EOW), and Archana Kute was arrested by the CID, Maharashtra, in September 2025.
The Enforcement Directorate (ED) has issued a provisional attachment order for all primary and collateral securities associated with the account. Furthermore, the company is currently undergoing the Corporate Insolvency Resolution Process (CIRP) at NCLT, Mumbai, which commenced in September 2025.
