The case is booked on the company, and its directors Bhupesh Kumar Jain, Tejraj Achha, Neeta Jain, Ajay Kumar Jain, and Sumit Kedia. Also, it is believed that there are some ‘unidentified’ Government officials connected to the scam.
The CBI officials searched the residents of the directors and board members on Wednesday. The company which manufactured gold jewellery and sold through distributors till 2014 changed its model to business to business (B2B). In 2008, the loan arrangement was taken over by SBI and later in 2011, it was converted into Multiple Banking System. It was said that the fraud is to the extent of Rs.824.15 but the security with which the loss could be covered is only up to Rs.156.65.
According to SBI, Kanishk had falsified and misinterpreted the financial statements since 2009. The company was also alleged of diverting the funds against the interest of the banks.