The CBI has registered a case against Delhi-based private firm Kwality Ltd and its directors for causing an alleged loss of over Rs 1,400 crore to a consortium of banks led by Bank of India.

Following registration of the case on September 10, the agency on Monday conducted searches at the premises of the accused firm and its directors.

The CBI registered the case on a complaint from Bank of India against Kwality Ltd and others including its Directors, and other unknown persons for causing an alleged loss of Rs 1,400.62 crore to Bank of India  and other consortium banks, the agency said.

“It was alleged in the complaint that the said accused had cheated the Bank of India-led consortium comprising BOI (lead bank), Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI, Central Bank of India, Dhanlaxmi Bank and Syndicate Bank to the tune of Rs 1,400.62 core by way of diversion of bank funds, sham transactions with related parties, fabricated documents/receipts, falsified books of accounts, created false assets and liabilities among others,” it said.

The searches were conducted at eight locations including Delhi, Saharanpur, Bulandshahr (Uttar Pradesh), Ajmer (Rajasthan) and Palwal (Haryana) at the premises of the private company and other accused persons in the case. Further investigation is continuing, it further said.

Those named as accused in the case include Kwality Ltd, Sanjay Dhingra, Siddhant Gupta, Arun Srivastava and other unknown persons.

According to the FIR, diversion/misappropriation of public money by the accused firm and individuals was done during the period 2010-2017.