CBI searches Mumbai sites in Rs 58.48 crore SBI loan fraud case against Avaya Industries
The CBI searched locations in Mumbai on 29 October 2026 in a case on SBI's complaint alleging Avaya Industries and its directors caused the bank a wrongful loss of Rs 58.48 crore.
Key points
- The CBI searched several Mumbai locations in a case registered against Avaya Industries Ltd on a complaint by State Bank of India.
- SBI's complaint alleges the company and its directors obtained credit by misrepresentation, causing a wrongful loss of Rs 58.48 crore.
- The CBI says documents recovered in the searches are being examined and further investigation is in progress.
The Central Bureau of Investigation (CBI) searched several locations in Mumbai on 29 October 2026, including residential properties linked to the directors of Avaya Industries Ltd, in a bank fraud case, the agency said. The case was registered on a complaint by State Bank of India (SBI) against the company, its directors and unknown public servants and private persons. The complaint alleges a wrongful loss of Rs 58.48 crore to the bank.
What Happened
According to the CBI, SBI's complaint alleges that Avaya Industries Ltd and its directors obtained credit facilities by misrepresentation.
The CBI said the accused allegedly did this through fictitious sales and inflated stock figures, by hiding export receivables and not recovering them, and by diverting funds through unsecured advances. The agency also listed allegations of routing transactions through another bank without authorisation, fabricating the balances owed by the company's debtors, and selling or misrepresenting property that had been mortgaged or assets that had been hypothecated, that is, pledged to the bank as security for the loan.
The CBI said incriminating documents were recovered during the searches. The seized material is being examined to find the full extent of the alleged conspiracy, misappropriation and diversion of funds, and the role of everyone involved. Further investigation is in progress, the agency said.
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 and searches are steps in a criminal investigation; the allegations will be tested at trial. The case concerns loans taken by a company and does not affect the deposits of SBI's ordinary customers.
The allegations show the kinds of practices banks look for when they check a borrower: sales that did not happen, stock values that were inflated, export money that never came back, and security that was sold without the bank's knowledge.
Bank 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