CBI registers Rs 210.13 crore bank fraud case against Chandra Proteco, searches premises
The CBI has registered a case against Chandra Proteco Limited and its directors on Indian Bank's complaint, alleging a wrongful loss of about Rs 210.13 crore to five banks.
Key points
- The CBI registered a case against Chandra Proteco Limited, its directors and unknown others on a complaint by Indian Bank.
- The CBI alleges a wrongful loss of about Rs 210.13 crore to five banks, from loans of Rs 541.46 crore by a six-bank consortium.
- The CBI searched premises linked to the directors in Prayagraj and says its investigation into the loan funds is continuing.
The Central Bureau of Investigation (CBI) has registered a case against Chandra Proteco Limited, its three directors, unknown public servants and unknown persons on a complaint by Indian Bank, according to a CBI release dated 29 October 2026. The CBI alleges that the accused caused a wrongful loss of about Rs 210.13 crore to five banks, including Indian Bank. The agency has also searched premises linked to the company's directors in Prayagraj, Uttar Pradesh.
What Happened
The complaint came from Indian Bank's Stressed Asset Management Branch in Mumbai. The case covers criminal conspiracy, cheating and offences under the Prevention of Corruption Act, the CBI said.
According to the CBI, the company obtained cash credit, a term loan and letters of credit amounting to Rs 541.46 crore from a consortium of six banks led by Indian Bank. The CBI alleges that the company ran undisclosed accounts with banks outside the consortium and that letters of credit devolved through entities with common directors or sister concerns. The CBI has also alleged that the company did not use the bank funds for the purpose for which they were sanctioned and diverted them through associate companies, causing a loss to the banks.
During the searches in Prayagraj, the CBI said it recovered and seized ledgers of the relevant period and other documents relevant to the investigation. The agency said its investigation is continuing to find the full extent of the alleged conspiracy, identify the role of everyone involved, including public servants and private individuals, and trace how the loan money was used.
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 case of this kind is an accusation that will be tested at trial. It is a criminal case against the company and its directors over loans they took; it does not change the deposits of ordinary customers of Indian Bank or the other lenders.
For the banks, the case is part of the effort to recover money they say was lost on these loans. The CBI said the role of public servants is still being investigated.
Customers with a complaint about their own bank can approach the RBI 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