CBI probes misappropriation of funds by pvt company

The Central Bureau of Investigation (CBI) has initiated a probe into the alleged misappropriation of funds that was given to a private company as loan by a bank.

According to a CBI officer, Shree Mahalaxmi Corporation Private Limited had taken a loan of Rs 142.89 crore from the industrial finance branch in Kolkata of a nationalised bank.

Sources said that a case has been initiated against the directors of the company Gopal Agarwal and Banwari Lal Agarwal. The police are also looking into the role played by the then chief manager of the bank.

A case under different sections of the Indian Penal Code on charges of criminal conspiracy read with cheating and Prevention of Corruption Act has been initiated.

The CBI initiated the case on the basis of a complaint lodged by the nationalised bank authorities stating that the fund that was given as loan for business purposes has been misused.