CBI Court Convicts SRS Company Directors in ₹152-Crore Canara Bank Fraud Case

After more than five years of investigation and trial, a special Central Bureau of Investigation court in Panchkula has convicted directors of SRS Real Estate Ltd and SRS Real Infrastructure Ltd in a major Canara Bank fraud case involving ₹152 crore in diverted loan funds. The verdict brings to a close a prosecution that focused on how sanctioned credit was allegedly misused through a web of shell entities.

How the bank’s complaint escalated into a criminal prosecution

The case dates back to July 2020, when Canara Bank’s Circle Office in Karnal approached the CBI with allegations that SRS group companies had secured large credit facilities by misrepresenting their financial position and the intended use of funds. Investigators later alleged that instead of being deployed for approved projects, a significant portion of the money was rerouted through entities with no genuine commercial activity.

According to the CBI, SRS Real Infrastructure Ltd availed a credit limit of ₹42 crore, while SRS Real Estate Ltd received loans totalling ₹110 crore. The agency concluded that more than ₹93 crore was siphoned off via shell companies, breaking the audit trail and causing wrongful loss to the public sector bank. Such cases underscore why robust financial controls and independent auditing services in india are often cited by regulators and bankers as a first line of defence against large-scale fund diversion.

Court findings, convictions and sentencing

Following two detailed chargesheets filed in December 2022, the trial proceeded before the special CBI court. On December 22, 2025, the court held both companies and six directors guilty of cheating, conspiracy and forgery-related offences. Sentences were pronounced on January 13.

Anil Jindal, Bishan Bansal, Nanak Chand Tayal and Rajesh Singla were convicted under Section 420 of the IPC and sentenced to five years of rigorous imprisonment each. Seema Narang and Dheeraj Gupta were convicted under Sections 120-B, 420, 468 and 471 of the IPC and sentenced to four years of rigorous imprisonment. All sentences will run concurrently.

During the sentencing hearing, the court also directed jail authorities to ensure medical treatment for some of the convicted directors who cited health issues, reinforcing procedural safeguards even as custodial sentences were imposed.

The judgment is being viewed as a significant enforcement milestone in long-running bank fraud cases, reiterating judicial intolerance for corporate misrepresentation and diversion of public funds.