CBI files case against Biotor Industries for fraud

The CBI has registered a case of cheating and fraud against directors of Biotor Industries, manufacturer of castor oil, for allegedly submitting forged documents to three banks and availing a loan of Rs1500 crore.

The Banking and Securities Cell of CBI last week registered a case against the company for availing loans from Bank of Maharashtra, Oriental Bank of Commerce and Central Bank of India to the tune of Rs1500 crore on the basis of forged and fabricated documents.

According to the CBI, the Gujrat-based company Biotor had last year approached the three banks seeking post-harvest loans stating that they would procure raw material for the manufacture of the oil from the farmers directly who grow the seeds.

"The company signed management and collection agreements with the three banks wherein it would through village level agriculturist would identify those farmers and do verification of their documents," a senior CBI official said.

However, the company submitted forged identification documents like election cards and 7/12 extracts of the land, the official said adding apart from the directors of the company, the FIR also includes the names of nine village level agriculturists.

Searches were conducted at the office and residences of Biotor's directors and incriminating documents have been recovered.