The Central Bureau of Investigation has booked Mumbai-based Frost International, its directors Uday Desai and Sujay Desai besides 11 other individuals and companies for allegedly cheating a consortium of 14 banks to the tune of over Rs 3,592 crore, officials said.
The action has been taken on the complaint of Kanpur Zonal office of Bank of India, which alleged that the directors had worked in the guise of undertaking merchanting trade without genuine business, they said.
It is alleged that they had defaulted in meeting payment obligation towards the lending banks of the consortium led by Bank of India, the officials said.
The company and its directors, guarantors and unidentified others submitted forged documents, diverted and siphoned off the bank's funds, they said.
The action of the company and its directors cheated the banks to the tune of over Rs 3,592.48 crore, they added.
The banks had already secured Look out Circular against Uday Desai and 10 others on Jan. 18, 2019. It was preceded by another LOC against Desai and 13 others on the request of Indian Overseas Bank, they said.
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