Debt

Debt financing

CBI books textiles major S.Kumars, promoters for Rs.1245-Cr loan fraud

Financial Express  

The Central Bureau of Investigation (CBI) has booked textiles major S Kumars Nationwide Limited (SKNL) and 14 others including its promoters and directors for alleged bank fraud amounting to INR 1,245 crore. The central agency searched 13 locations in Maharashtra, Gujarat and West Bengal linked to the accused and claims to have recovered “incriminating documents”. The company was a manufacturer of high-value fine cotton fabrics and home textiles. It had availed credit from a consortium of banks led by IDBI Bank, which had filed the complaint. The other banks in the consortium were Central Bank of India, The Jammu & Kashmir Bank Ltd., Punjab National Bank and Indian Bank. The promoters/directors of the company were booked for allegedly “misusing/diverting the bank funds during the period 2012 to 2018”.