New Delhi, Oct 22 (IANS): The Central Bureau of Investigation on Friday conducted searches and registered a case against two Directors of Indore-based private company for bank fraud to the tune of approximately Rs 30 crore.

The CBI conducted searches at the premises of accused in Bhopal and Indore which led to recovery of incriminating documents.

As per the CBI, it has registered a case against the said private company based at Indore and unknown public servants on a complaint from the Bank of Baroda, Indore.

"It was alleged that borrower company had committed fraud during the period of 2014 to 2017 in conspiracy with its directors and unknown public servants and cheated Bank of Baroda to the tune of Rs 29.41 crore (approx)."

It was further alleged that the said private company was advanced the working capital loan and term loan amounting to Rs 36 crore by the Bank of Baroda on September 13,2014 after taking over credit facilities extended by IDBI Bank.

The said loan account became NPA on May 2, 2017 and was subsequently reported as fraud to the RBI. The outstanding loan amount was Rs 29.41 crore.

It was also alleged that the forensic accounting had revealed siphoning of funds and diversion of funds by the company.