Kolkata/Ahmedabad: In a major development involving financial fraud and misuse of public funds, the Central Bureau of Investigation (CBI) has registered an FIR against a Madhya Pradesh-based company, its directors, and unknown public servants in connection with a multi-crore bank fraud case involving the National Bank for Agriculture and Rural Development (NABARD).
The case pertains to the alleged siphoning and diversion of loan funds amounting to over ₹11.33 crore sanctioned under a government-backed financial scheme.
FIR Registered by CBI
According to the FIR registered by the CBI’s Economic Offences Branch (EOB), Kolkata, the case has been filed under sections of criminal conspiracy, cheating, and criminal breach of trust, along with provisions of the Prevention of Corruption Act.
The FIR was officially registered on January 5, 2026, following a complaint by Ashok Kumar, Deputy General Manager of NABARD, Ahmedabad.
Loan Sanctioned for Food Processing Project
The accused company, M/s Parwati Agro Product Pvt. Ltd., had approached NABARD for financial assistance to establish a multi-product food processing unit in Gujarat.
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- Initial loan sanctioned: ₹7 crore in 2020
- Additional loan sanctioned: ₹4.975 crore in 2023
- Total loan disbursed: ₹11.975 crore
The project included plans for processing cashews, ready-to-eat meals, frozen fruit pulp, and vegetable products.
Allegations of Fraud and Fund Diversion
Investigations revealed that the accused company and its directors allegedly misused the loan funds instead of utilizing them for the intended project.
Key allegations include:
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- Diversion of funds to related entities and personal accounts
- Non-installation of machinery at the project site
- False representations made to secure loan approvals
- Failure to commence commercial operations within deadlines
A site inspection further confirmed that machinery claimed to be purchased was not present, raising strong suspicion of fraud.
Money Trail and Forensic Findings
A forensic audit conducted in the case uncovered a complex money trail:
- Over ₹11 crore routed through third-party entities
- Large transactions linked to individuals connected with the accused
- Funds cycled back to promoters and guarantors
The report clearly indicated systematic siphoning of public money through fraudulent transactions and layered fund transfers.
Account Declared Fraud
Following continuous defaults and irregularities:
- The account was classified as NPA in September 2024
- Declared a fraud account in April 2025
- Outstanding dues: ₹11.33 crore (excluding interest and penalties)
Despite repeated notices, the accused allegedly failed to respond or repay the dues.
Involvement of Multiple Accused
The FIR names:
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- Company directors and promoters
- Personal guarantors
- Authorized representatives
- Unknown public servants and other individuals
CBI suspects a criminal conspiracy involving multiple stakeholders to defraud the bank and siphon off funds.
Legal Action and Investigation
The CBI has initiated a detailed investigation into the case to:
- Trace the full money trail
- Identify involvement of bank officials or other public servants
- Recover diverted funds
- Establish criminal liability of all accused
The agency has also indicated that further arrests and action may follow as the probe progresses.
Conclusion
This case highlights serious concerns over misuse of public funds and loopholes in loan monitoring systems. The alleged fraud not only caused heavy financial losses to NABARD but also undermines trust in government-backed financial schemes aimed at promoting rural and agro-based industries.
The investigation is ongoing, and more revelations are expected in the coming days.