CBI Books Mumbai Firm, Directors in ₹63 Crore Bank Fraud Linked to Lucknow Project

The Central Bureau of Investigation (CBI) has registered a case against a Mumbai-based firm and its directors for allegedly defrauding Union Bank of India’s Aliganj (Lucknow) branch of ₹62.97 crore. The FIR, filed by the CBI’s special crime branch, accuses the company of securing loans under false pretenses for a residential project in Lucknow’s Vrindavan Yojna and siphoning funds through shell entities.

Fraud Details:

The firm allegedly misrepresented project details to obtain the loan, diverting the entire amount using fabricated contracts. A forensic audit revealed the creation of M/s Deserve Construction—a shell entity with no construction expertise—to funnel funds. Investigations confirmed that the promoters of both the accused firm and Deserve Construction were identical, rendering the subcontracting agreement fraudulent.

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Money Laundering Probe:

The Enforcement Directorate (ED) has launched a parallel probe into suspected money laundering. The CBI stated that directors Santosh Kumar Sarda, Manish Sarda, Utkarsh Sarda, Deepak Sarda, and others colluded to sell company stock and route funds through multiple accounts to evade detection.

Charges & Legal Action:

The accused face charges under IPC Sections 120B (criminal conspiracy), 420 (cheating), and 406 (criminal breach of trust). The CBI emphasized that the fraudulent subcontracting arrangement was orchestrated solely to deceive the bank.