CBI Registers Case in Bank of India ₹19.30 Crore Loan-Diversion Allegations

CBI case registered after a bank complaint

The Central Bureau of Investigation’s Economic Offences Branch in Kolkata registered a case on 3 November 2026 concerning allegations of diversion of credit facilities provided by Bank of India to Natraj Rice Mill Private Limited. Dainik Jagran reported the development on 5 November, identifying a written complaint from the recovery department of the bank’s Ranchi zonal office as the basis of the case. It reported nine named accused as well as unidentified public servants and other persons. A registered case is the beginning of a criminal investigation; it is not a court finding that an accused person committed an offence.

What the reported figures mean

According to the news report’s account of the complaint, the company received total credit facilities of about ₹20.43 crore between 2013 and 2025. The facilities comprised ₹17 crore of cash credit and ₹3.43 crore of a working-capital term loan. The alleged loss or unpaid balance is ₹19.30 crore, and the credit account became a non-performing asset on 24 June 2025. The ₹20.43 crore facility and the ₹19.30 crore alleged unpaid amount describe different measures; they should not be presented as interchangeable.

Investigators are examining an allegation that money meant for rice-milling operations was transferred away from its sanctioned business purpose. The report identifies the borrower company, former directors and associated entities among those named. The suggestion of involvement by unidentified public servants remains an allegation to be tested by investigators. No individual Bank of India employee has been found guilty merely because an FIR refers to unidentified public servants.

Earlier court proceedings are separate from the new investigation

This lending account has an independently traceable litigation history. In Natraj Rice Mill Private Limited & Others v. Bank of India & Others, W.P.A. No. 13553 of 2026, the Calcutta High Court delivered a judgment on 12 August 2026. The proceeding concerned the borrower’s challenge to the bank’s fraud classification and forensic-audit process. The record states that the bank had classified the account as a non-performing asset on 24 June 2025 and that the classification of the account as fraud was challenged by the petitioners.

That August writ proceeding and the CBI case reported in November are distinct legal steps. An earlier bank classification, even when considered by a court, is not a criminal conviction. The allegations, defences, evidence and ultimate criminal responsibility must be considered in the proper proceedings.

What Bank of India lending and recovery teams can take from the case

For bankers dealing with working-capital facilities, the reported issues point to the importance of documented end-use monitoring, reconciliation of borrower financial statements with banking activity, periodic stock and receivables assessments, and careful preservation of sanction and audit records. These are professional risk-control considerations arising from the reported fact pattern, not a claim that a new regulation or fresh bank-wide staff instruction has been issued.

When reading the allegations, staff should distinguish a bank’s outstanding debt, a fraud-classification decision, registration of an FIR, any subsequent charge sheet and a final judicial finding. Each stage has a different legal meaning. No employee-wide disciplinary action or branch policy change has been confirmed in the material inspected for this report.

What is confirmed and what is not

• Reported new development: Jagran reports a CBI case registered on 3 November 2026 after a Bank of India recovery-office complaint.
• Independent historical record: A Calcutta High Court judgment of 12 August 2026 confirms prior litigation concerning the same borrower and lending account.
• Not independently obtained: A certified copy of the newly registered CBI FIR, the complete current case diary, any response from the accused, or a final criminal finding.
• Legal status: All alleged loan diversion and misconduct remain matters for investigation and adjudication. The report does not establish the guilt of any bank employee.

Sources and References

• बैंक ऑफ इंडिया को 19.30 करोड़ का चूना, सीबीआई ने रांची-कोलकाता के नौ आरोपितों पर दर्ज किया मामला — Dainik Jagran
• Natraj Rice Mill Private Limited & Ors vs Bank Of India & Ors on 12 August, 2026 — Calcutta High Court judgment reproduced by Indian Kanoon