Business Line reported that the Central Bureau of Investigation has booked Ahmedabad based steel fabricator Steel Konnet (India) Private Limited and others for allegedly cheating the Bank of Baroda and causing a loss of more than INR 100 crore. CBI also named Mr Varun Vijay Gupta and Mr Vivek Vijay Gupta as accused, while the bank officials involved in managing the loan account have also come under the scanner. According to the FIR, a forensic audit of the loan account allegedly disclosed a diversion of funds to the tune of INR 92 crore to various entities. Some of them were identified as Dharampal Iron & Steel Private Limited, Jagat Infra Project, Anupam Industries Limited, BishwesharLal Steel, Chhapaiya Trading Co, DM Trading Co, Avanti Trading Co, Dev Steel Traders and Vraj Traders. Suspect transactions were also detected with entities such as MJ Agro Industries, Shree Sai Industries Private Limited, Shubhmangal Exim P Limited and Shubhmangal Infracon Private Limited
The account had turned non-performing asset on December 29, 2016. However, it was reported to the Reserve Bank of India as a fraud only in September 2019. In its books of account, the company had shown to have incurred a net loss of INR 47.32 crore till March 2017. As per the records, it sold products to several companies, but made huge payments to them, raising suspicion that funds were diverted.