3 companies linked to bank fraud, bad debts face SFIO probe

The government has ordered an enquiry by the Serious Frauds Investigation Office (SFIO) against Ruchi Soya, Sterling Biotech and Chennai-based jewellery chain Kanishk Gold as part of its latest crackdown against companies that have impacted banks.

The ministry of corporate affairs referred the cases to SFIO recently, sources said. Ruchi Soya is facing insolvency proceedings, with Ramdev's Patanjali seen to be the front-runner to take over the ailing company with a bid of Rs 4,000-4,500 crore. The company, which makes Nutrela soya products among others, faces claims of around Rs 12,000 crore.

Sterling Biotech and Kanishk Gold have been named by the Central Bureau of Investigation (CBI) in two cases. In January, State Bank of India (SBI) had sought CBI's help to investigate Kanishk Gold for an alleged loan fraud of around Rs 825 crore.

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