Financial Insights

Fraud case worth Rs 1,245 crores registered against S Kumars Textiles

The Central Bureau of Investigation (CBI) has booked S Kumars Nationwide Textiles (SKNL) and 14 other, including it’s promoters and directors in a bank loan fraud case of Rs 1,245 crores.

After registration of the FIR, the CBI raided 13 locations in Maharashtra, Gujarat and West Bengal associated with the accused and recovered several incriminating documents.

S Kumars Nationwide Limited is one of India’s earliest textile brands, established in 1948. They make high quality work wear, premium office clothes, school uniforms and other miscellaneous items. They have very high profile clients like Air India, Grasim, Bharat Petroleum, Coca Cola and Amul. They also serve government branches like the CISF and J&K police.

The accused have been booked for misusing and diverting bank funds between 2012 and 2018 which has resulted in bank losses worth Rs 1,245.15 crores.

“The complaint was filed by the IDBI Bank Ltd. and also on behalf of four other member banks of the consortium, namely, Central Bank of India, The Jammu & Kashmir Bank Ltd., Punjab National Bank and Indian Bank,” CBI spokesperson RC Joshi said.

However, this is not the first case against the textile company. In July last year, the CBI booked a case against them for defrauding Union Bank of India of Rs 160 crores. SKNL and it’s subsidiaries have been under the scanner of several government authorities multiple times, including the Serious Fraud Investigations Office.

Highlight by Aman Agarwal.

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