New Delhi, Jul 2 (IANS): Cracking its whip against bank defaulters, the CBI on Thursday carried out searches at the premises of Bulandshahr-based Santosh Overseas Limited and its director Sunil Mittal in connection with an alleged fraud of over Rs 424 crore.

CBI officials here said that it conducted searches in Uttar Pradesh's Bulandshahr and Delhi.

The CBI booked the company and Mittal in connection with a complaint from a consortium of seven banks led by the IDBI, alleging that they were defrauded to the tune of Rs 424.07 crore.

A CBI spokesperson said that it was alleged that the borrower company had availed packing credit from the banks on a fake purchase order from an associate concern.

"It was further alleged that the company was maintaining current accounts with non-consortium banks and the sale proceeds were routed through these accounts without the knowledge of consortium members," the spokesperson said.

The CBI has alleged that heavy transactions were made by the company with related parties who did not have TIN registration etc.

Searches at the premises of the accused at Delhi and Bulandshahr led to the recovery of certain incriminating documents and material, the official added.