KS Oils Limited - SBI Loan Fraud Case

KS Oils Ltd. is India's leading integrated edible oil company serving millions of customers with its trusted brands and health-friendly products.

It is a leading integrated edible oil company and is the trusted name behind renowned brands like Kalash, Double Sher, KS Gold, among others. Its consumer brands and products are mustard oil, soybean oil and palm oil. It enjoys 11% market share in the overall mustard oil segment with a dominant 25% market leadership in branded mustard oil.

CBI has registered a case against the Company and has also lifted the corporate veil and register the case against directors and Promoters and conducted investigations on a complaint filed by SBI regarding fraud Rs 938.81 crore

 Its registered office in Morena, Madhya Pradesh and Residential and official premises of its Directors and Promoters are being raided and searched.

The searches are carried out at five locations in MP and in the offices' premises of KS Oils Ltd. on Delhi’s Barakhamba Road, including Residential and official premises of Managing Director Ramesh Chand Garg and Promoter Saurabh Garg concerning the Rs 938 crore loan fraud in the State Bank of India (SBI). Director Devesh Agarwal has also been booked but searches are not conducted at his premises yet.

Findings of the Forensic audit indicated that the financials of the company were inflated while applying for loan facilities. It was further alleged that the loan amount was misappropriated through fraudulent diversion.