The Central Bureau of Investigation has filed a case against the now-dissolved Hanjer Biotech (Erith) Ltd for an alleged $10 million fraud against India Exim Bank. Investigators claim that loan funds sanctioned in 2012 were diverted to related entities instead of being used for machinery procurement. This case adds to broader banking sector concerns regarding the monitoring of project-linked debt and the complexities of recovering funds from dissolved overseas entities.
The Central Bureau of Investigation (CBI) has launched a formal probe into an alleged $10 million loan fraud targeting India Exim Bank. The investigation centers on Hanjer Biotech (Erith) Ltd, a UK-based company that has since been dissolved, along with its former directors and associated Indian firms, including Navi Infrastructure Engineering Pvt Ltd and Hume Synthesis Pvt Ltd.
The Allegation of Fund Diversion
The dispute originates from a 2012 term loan approved by the bank to finance a recycling project in the United Kingdom. According to the FIR, the total project cost was estimated at $15.90 million, with the bank providing a significant portion of the capital. Investigators allege that the funds were not used to procure the intended machinery. Instead, the money was purportedly diverted as internal loans to related entities, specifically Hume Synthesis Pvt Ltd. The loan account subsequently turned into a non-performing asset (NPA) in 2014 and has since been classified as a fraud under Reserve Bank of India regulations.
Challenges in Recovery and Governance
A primary complication for lenders in this case is that the principal borrower, Hanjer Biotech (Erith) Ltd, is currently a dissolved entity. This creates significant hurdles for the recovery of the approximately ₹63 crore deficit left by the failed venture. The dissolution complicates legal recourse and asset tracing, which are essential steps in the resolution process for public sector lenders.
Broader Context of CBI Investigations
This case is not the only investigation involving the Hanjer group. The CBI is simultaneously conducting a separate probe into Mumbai-based Hanjer Biotech Energies Pvt Ltd regarding an alleged ₹93.44 crore fraud against Punjab National Bank (PNB). The agency conducted searches related to the PNB case in early October 2026.
These concurrent investigations highlight the importance of rigorous due diligence and ongoing monitoring of project loans for investors and stakeholders in the banking sector. For public sector banks, such cases underscore the risks associated with overseas project finance and the difficulty of recovering capital when entities are liquidated or dissolved. As the investigation progresses, the key monitorables for the sector will be any further identification of involved public servants, potential asset seizures, and the ability of the banks to initiate cross-border legal actions against the implicated parties.