The Central Bureau of Investigation filed a case against Chennai-based jeweller Kanishk Gold Private Limited for allegedly cheating a consortium of 14 banks, led by the State Bank of India, of Rs 824 crore, PTI reported on Wednesday.

The directors of the company, Bhupesh Kumar Jain, his wife Neeta Jain, Tejraj Achha, Ajay Kumar Jain and Sumit Kedia were booked along with some government officials. The CBI also issued a lookout circular against the firm’s promoters and directors.

The agency searched the premises of Kanishk Gold and its directors in Chennai and Kancheepuram.

In 2008, Kanishk Gold’s loan amounts were taken over from ICICI Bank by the State Bank of India. In 2012, a consortium of 14 banks was formed, including Punjab National Bank, IDBI Bank, Union Bank of India, Syndicate Bank, HDFC Bank and Central Bank.

The SBI has said that it has to recover Rs 240 crore from the company as on December 31, The Hindu reported. The Punjab National Bank has to recover Rs 128 crore, while Syndicate Bank had an exposure of about Rs 55 crore. The Union Bank of India and IDBI Bank had a credit exposure of Rs 54 crore and Rs 49 crore.

In its complaint, SBI said Kanishk Gold had misrepresented and falsified the records and financial statements of the company since 2009 to receive credit. While the fraud is worth Rs 824 crore, the security available with the bank to cover the loss is around Rs 158.65 crore, the complaint said.

“It is also revealed that KGPL and its directors have diverted the funds detrimental to the rights and interests of the banks,” IANS quoted from the complaint. “The account has been classified as NPA [non-performing asset] as per the extant guidelines of the Reserve Bank of India by all the lenders of the consortium.”

“There has been no fund diversion as claimed,” one of the owners Bhupesh Kumar Jain told The Economic Times. “I am in touch with the lenders. I am in Chennai and I meet them often. Things are on track. We have two interested investors, but the banks have to arrive at a conclusion.”

In January, SBI wrote a letter to the CBI alleging that Kanishk Gold had manipulated records and shut shop overnight. In May 2017, when the bankers visited the company’s corporate office, factory and showroom, they reportedly found no activity or stock.