Dairy products firm Kwality Limited accused in Rs 1,400-crore fraud case

The Central Bureau of Investigation on Monday filed a fraud case against Delhi-based dairy products company Kwality Limited for allegedly cheating a Bank of India-led consortium of Rs 1,400 crore, PTI reported. The investigative agency also conducted searches at eight locations, including Delhi, Haryana and Uttar Pradesh.

A case has been filed against the company’s directors Sanjay Dhingra, Siddhant Gupta, Arun Srivastava and other unidentified persons. “It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising BOI [lead bank], Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, Industrial Development Bank of India, Central Bank of India, Dhanlaxmi Bank, Syndicate Bank to the tune of Rs 1400.62 crore approximately,” CBI spokesperson RK Gaur said.

The central agency said Kwality is accused of cheating the banks by “diversion of bank funds, sham transactions with related parties, fabricated documents or receipts and falsified books of accounts” and creating false assets and liabilities.