CBI Raids 7 Locations in Mumbai and Ahmedabad Over Rs 119 Crore Bank Fraud Cases

NEW DELHI MAY 22 ,2026— The Central Bureau of Investigation (CBI) launched extensive search operations at seven distinct locations across Mumbai and Ahmedabad in connection with two separate bank fraud cases cumulatively worth over Rs 119 crore. The coordinated raids, executed on May 21, 2026, targeted the residential premises of company directors following search warrants issued by special courts. The enforcement action led to the seizure of several incriminating documents, which officials confirm are currently being evaluated as the investigation into both financial scams progresses.

The first case involves M/s Shri Hari Extrusion Pvt. Ltd., which stands accused of defrauding Punjab National Bank (PNB) of Rs 61.98 crore. According to the agency, the company secured Cash Credit and Term Loan facilities from PNB, only to subsequently engage in fraudulent practices. The borrowers allegedly misutilised and diverted the loan funds by distributing unsecured loans, conducting unauthorized transactions with sister concerns, failing to route sales through the lender bank, and funneling payments to related parties.

The second probe targets M/s Jay Formulations Ltd. for allegedly defrauding the State Bank of India (SBI) to the tune of Rs 57.05 crore. In this instance, the accused company secured both fund-based and non-fund-based credit facilities from SBI by presenting falsified books of accounts, later diverting those loan funds for unauthorized purposes. Together, the fraudulent activities of these two corporate entities have caused a combined wrongful loss of Rs 119.03 crore to the public sector banks.