Court accepts closure report in Rs 70 cr fraud case against Bathinda-based company

Ramkrishan Upadhyay

Tribune news service

Chandigarh, August 9

The CBI court, Chandigarh, has accepted a closure report in an FIR registered against a Bathinda-based company Kissan Fats Limited and its directors in an alleged bank fraud of over Rs 70 crore.

The court accepted the closure report after the complainant Ahamed Kabeer, Deputy General Manager, Indian Overseas Bank, made a statement before the court.

The DGM said, “M/s Kissan Fats Limited had filed a writ petition in the high court, which quashed the FIR by an order dated May 27. Therefore, I have no objection qua acceptance of closure report filed by the CBI in this case. However, the complainant-bank shall investigate the matter again in accordance with the guidelines of the Reserve Bank of India as well as the law of land.”

The CBI court in its order said since the FIR had already been quashed, no further action was required into the matter.

In 2021, the CBI had registered the case against the company and its six directors on the complaint of Kabeer, who alleged that the accused defrauded the bank to the tune of Rs 72 crore by conspiring and misrepresenting the facts.

He added that the auditors had observed that borrowers had diverted the funds to the sister company. Further, the firm could not meet the obligation of payment in letters of credit from 2012 to 2014.

During this phase, the company approached the bank for restructuring. In 2015, the account was categorised as a non-performing asset.

During inspection, no manufacturing activity was noticed at the site and the bank took the symbolic possession of the property.