New Delhi, Aug 22 (IANS): The Central Bureau of Investigation (CBI) on Saturday conducted searches at five locations in Delhi and Madhya Pradesh in connection with the Rs 938 crore loan fraud in the State Bank of India (SBI).

The searches were being carried out in Madhya Pradesh's Morena and the office premises of KS Oils Ltd on Delhi's Barakhamba Road, as also of its Managing Director and promoters.

A senior CBI official here said that the searches were conducted at four locations in Morena including the residential and official premises of Managing Director Ramesh Chand Garg and promoter Saurabh Garg.

The official said the agency registered a case against KS Oils, based at Morena and others including its MD, Promoter, Director and unknown others on a complaint from SBI regarding a bank fraud of Rs 938.81 crore.

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