CBI had registered a case against the said firm, it’s Directors and staff, unknown public servants and other private persons.
It was alleged that the accused entered into a criminal conspiracy among themselves and with unknown public servants & others to cheat Banks,Financial Institutions and Govt Exchequer.
In persuance of said conspiracy, the accused fraudulently diverted huge amount of bank funds through companies/Shell companies/entities etc and deliberately defaulted in repayment and also claimed inadmissible CENVAT credit.
A loss of Rs. 2348 Crore (approx) was caused to the lending Banks, Financial Institutions and Govt Exchequer.