CBI charges Mandhana Industries of a bank fraud worth Rs. 975 Cr

he Central Bureau of Investigation (CBI) has filed a FIR against Mumbai-based Mandhana Industries (now GB Global Ltd) for allegedly stealing Rs 975.08 crore from a group of investors led by Bank of Baroda, according to officials.

The CBI investigation is the result of a bank complaint alleged that the consortium was duped by the former managing director Purushottam Chhaganlal Mandhana, the former executive director Manish Biharilal Mandhana, and a few others in a close-knit criminal conspiracy to funnel money.

Mandhana Industries Limited is a textile company, which is engaged in the manufacturing of textiles and garments. Its segments include Textiles and Garment. A forensic investigation that the banks requested revealed a number of anomalies, including the misappropriation of money to pay off debts between corporations, the failure to use a Trust and Retention Account (TRA) to transfer Rs 420.39 crore between July 2016 and September 30, 2017, and bogus transactions.

The 39-year-old business owned by the Mandhana family started making use of credit facilities from the Bank of Baroda in 2008; however, on 31 December 2016, the account was classified as a non-performing asset.