Hyderabad: A multi-state CBI probe into an alleged ₹47.3 crore bank fraud involving Hyderabad-based Jupiter Bio Sciences Ltd gathered pace on Wednesday, with investigators conducting coordinated searches across four states and seizing documents and digital evidence linked to suspected diversion of loan funds.The searches, carried out in Telangana, Karnataka, Maharashtra and Tamil Nadu, covered offices and residences linked to the company’s directors. Those named in the case include the company’s managing director, directors, unidentified public servants and private individuals. The company was represented by directors Venkat Ramana Kalavakolanu, Kyoganahalli Nanjundiah Guha, Rudolf Tanner and Srinivasan Chakravarthi Mandayam.According to the CBI, documents and electronic records recovered during the raids are being examined to trace the flow of funds, establish the extent of the alleged conspiracy and determine the role of those involved.The CBI registered the case on June 29 based on a complaint filed by UCO Bank, Hyderabad, following directions issued by Telangana high court.According to the complaint, Jupiter Bio Sciences allegedly secured credit facilities by submitting fake and fabricated proforma invoices, a fraudulent net worth certificate and inflated valuation reports relating to collateral securities, causing a wrongful loss of ₹47.3 crore to the bank.UCO Bank had sanctioned two term loans and a corporate loan totalling ₹56 crore to the company during 2008 and 2009. The account was classified as a non-performing asset on March 31, 2011.The bank subsequently initiated recovery proceedings under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) Act, auctioned collateral assets and recovered ₹2.90 crore. It also secured a recovery certificate from the Debts Recovery Tribunal.A forensic audit conducted in June 2023 allegedly found fake quotations, lumpsum loan disbursements indicating diversion of funds and suppliers that were not operating from their stated addresses. Following the audit, the account was reported as fraud to the Reserve Bank of India in Dec 2023. Notices issued to the company’s directors were returned undelivered from their last known addresses.The case reached the high court after the CBI initially declined to register it, citing the Telangana govt’s withdrawal of general consent to CBI investigations through an Aug 2022 GO. The agency maintained that state approval was required before proceeding.The CBI had also flagged inconsistencies in the bank’s complaint, including varying loss figures, the absence of certain internal investigation documents and missing authorisation records. It further pointed to contradictory claims regarding original loan documents. While the bank maintained that the records were in safe custody, an internal communication referred to by the agency indicated that documents had been destroyed in a fire at the branch in 2013.UCO Bank, however, argued that RBI guidelines require nationalised banks to report frauds exceeding ₹6 crore to the CBI and that obtaining case-specific consent from the state govt was the responsibility of the investigating agency.The high court held that withdrawal of general consent could not be treated as an absolute bar to examining a bank fraud complaint of such magnitude. It directed the CBI to process the complaint and seek case-specific consent from the Telangana govt under the Delhi Special Police Establishment Act.The CBI also informed the court that Jupiter Bio Sciences was already facing scrutiny in another CBI case. In March 2022, the CBI’s anti-corruption branch in Hyderabad registered an FIR against the company, its promoter and managing director K Venkata Ramana, Kever Pharma Private Ltd and others over an alleged fraud linked to a ₹60-crore term loan sanctioned by IFCI Ltd in 2009.That case involved allegations of diversion of loan funds, failure to create stipulated securities, inflated collateral valuations and irregularities in pledged shares, with a chargesheet filed in Nov 2023.
