This story is from August 7, 2021

Uttar Pradesh: CBI raids premises of Shri Lakshmi Cotsyn CMD in Kanpur, Fatehpur

Uttar Pradesh: CBI raids premises of Shri Lakshmi Cotsyn CMD in Kanpur, Fatehpur
KANPUR: A Central Bureau of Investigation (CBI) team raided the premises of the chairman-cum-managing director (CMD) of Shri Lakshmi Cotsyn, a company that allegedly caused a loss of over Rs 6,833 crore to a consortium of 10 banks led by the Central Bank of India, on Saturday.
The CBI team till the time of filing this report was engaged in the investigation at the company's headquarters located at Krishnapuram in Kanpur Nagar and Malwan in Fatehpur.

The company, which belongs to Mata Prasad Agarwal, started in 1993, had decided to double its business in technical textiles from Rs 1,000 crores in 2010.
The company, however, could not be able to return the amount taken from the stock market and bank till date.
Shri Lakshmi Cotsyn is the largest company in the city in terms of the amount to be defaulted. Apart from bulletproof jackets, the company also used to manufacture many defence products.
"It also manufactures blast-proof clothes for army vehicles. In 2005-06, the company ventured into the production of denim fabric. For this, a loan of about Rs 85 crore was taken from banks. To achieve success, units were also set up in Roorkee and Haryana. In 2006 the company doubled its production capacity. In 2010, it took a loan of Rs 693 crore from the Central Bank of India for the production of technical textiles. After this, the company prepared an investment of Rs 200 crore from the equity market and the company prepared its investment plan of Rs 100 crore," sources informd TOI.

Shri Lakshmi Cotsyn is headquartered in Krishnapuram of Kanpur Nagar and its plants are located in Fatehpur, Haryana, Noida and Uttarakhand.
Sources added that talks were going on with two foreign companies for the acquisition of Shri Lakshmi Cotsyn, which was declared a defaulter three years ago, but after their refusal, the well-known company of Maharashtra, Welspun took interest, but it did not work either.
Besides Agarwal, the CBI has also named Pawan Kumar Agarwal, joint managing director and guarantor, Sharda Agarwal, director and guarantor and Devesh Narain Gupta, deputy managing director as accused in the FIR registered on the complaint of Central Bank of India, sources said.
The CBI carried out searches at nine locations in Noida, Roorkee, Kanpur and Fatehpur on Saturday, the sources added.
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