CBI books IL&FS Energy Development in Rs 212.34 crore Canara Bank loan case
The CBI said it registered a case against IL&FS Energy Development Company and its directors over an alleged Rs 212.34 crore loss to Canara Bank, and searched premises in three cities.
Key points
- The CBI said it registered a case on 21 October 2026 against IL&FS Energy Development Company and its directors on a Canara Bank complaint.
- According to the CBI, loans of Rs 100 crore and USD 50 million were allegedly diverted, causing a wrongful loss of Rs 212.34 crore to the bank.
- These are CBI accusations to be tested at trial; the release does not say that Canara Bank depositors are affected.
The Central Bureau of Investigation (CBI) said it has registered a case against M/s IL&FS Energy Development Company Limited and five of its managing directors and directors over an alleged wrongful loss of Rs 212.34 crore to Canara Bank. According to the CBI's release of 24 October 2026, the case was registered on 21 October 2026 and was followed by searches in Mumbai, Delhi and Noida.
What Happened
The CBI said the case was registered on a complaint by Canara Bank's Circle Office in Bandra (East), Mumbai. Besides the company and its directors, the case names unknown public servants and unknown private persons. The offences listed are criminal conspiracy to cheat and offences under the Prevention of Corruption Act.
According to the CBI, the accused allegedly conspired to obtain a term loan of Rs 100 crore from the erstwhile Syndicate Bank, now part of Canara Bank, at its LCB Branch in Mumbai, and a loan of USD 50 million from its London branch. The CBI alleges that the company did not use the loan money for the purpose for which it was sanctioned, and that it diverted the funds through associate companies, causing a loss to the bank.
The CBI said it searched several premises linked to the company's managing directors and directors. According to the agency, it recovered and seized bank documents, deposit slips, mutual fund portfolio documents, bank account and property details of the directors, and the company's ledgers.
The CBI said its investigation is continuing to find out the full extent of the alleged conspiracy, identify the role of everyone involved, including any public servants and private individuals, and trace the loans' end use.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
What It Means
A CBI FIR is the start of a criminal investigation. Its contents are accusations that must be proved at trial, and registering a case does not mean anyone has been found guilty.
The case concerns loans given by the bank to a company. The CBI's release does not say that any depositor or customer of Canara Bank is affected. Customers with a complaint about their own bank's service can use RBI's complaint portal at https://cms.rbi.org.in.
Source: CBI press release
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
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Sources & Citations
- CBI press release — Central Bureau of Investigation