CBI Raids Mumbai and Ahmedabad in INR 119 Crore Bank Fraud Cases Linked to Shri Hari Extrusion and Jay Formulations

The Central Bureau of Investigation (CBI) conducted raids across seven locations in Mumbai and Ahmedabad on Friday in connection with two separate bank fraud cases involving a combined wrongful loss of INR 119.03 crore to public sector banks.

The searches were carried out at the premises of Shri Hari Extrusion Pvt. Ltd. and Jay Formulations Ltd., targeting residential addresses of the directors of both companies on the strength of search warrants issued by respective courts. The agency confirmed that incriminating documents were seized during the searches and that investigations are actively continuing. IDFC First Bank Scam: CBI Conducts Searches at 7 Locations in Chandigarh, Panchkula To Trace Siphoned Funds.

Shri Hari Extrusion: INR 61.98 Crore Fraud Against Punjab National Bank

The first case involves the alleged defrauding of Punjab National Bank to the tune of INR 61.98 crore through the misuse of Cash Credit and Term Loan facilities. According to the CBI, the borrowers resorted to a range of fraudulent practices including extending unsecured loans, conducting transactions with sister concerns, deliberately not routing sales proceeds through the lender bank, and making payments to related parties. Searches in this case were conducted at residential premises of the company directors in Mumbai. Gujarat Police Bust INR 631 Crore Multi-State Cyber Fraud Network in ‘Operation Mule Hunt 2.0’; 13 Arrested.

Jay Formulations: INR 57.05 Crore Fraud Against State Bank of India

The second case centers on the alleged defrauding of the State Bank of India to the tune of INR 57.05 crore through credit facilities, both fund-based and non-fund-based, obtained on the basis of false books of accounts. The CBI alleged that loan funds were subsequently diverted after being sanctioned. Searches in this case were conducted at residential premises in Ahmedabad, on the strength of warrants issued by a court there.

The total quantum of wrongful loss caused to public sector banks across both cases amounts to INR 119.03 crore, the agency said.

The CBI has indicated that investigations in both cases are ongoing and further action is expected as the probe advances.

(The above story first appeared on LatestLY on May 24, 2026 02:36 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).