NEW DELHI: Indian police have launched an investigation into a Delhi-based pharmaceutical company for allegedly defrauding state-run Punjab & Sind Bank and four other banks of 6.21 billion rupees ($94.57 million), police said.

"Investigation is continuing," Central Bureau of Investigation (CBI), the federal police, said in a statement on Tuesday. The CBI said the searches were conducted at seven locations and recovered some documents.

The police acted following a complaint from the Punjab & Sind Bank against Surya Pharmaceuticals SURP.NS , its two promoters and a Dubai-based company, alleging they had defrauded the banks and siphoned off funds through group companies, a police report reviewed by Reuters showed.

Reuters' attempts to contact officials of Surya Pharmaceuticals and Punjab & Sind Bank officials through phone and email outside office hours remained unanswered.

The finance ministry had earlier asked all banks to step up vigilance following a $2 billion fraud in February at India's second-biggest state-run lender Punjab National Bank. ($1 = 65.6650 Indian rupees)

(Reporting by Nigam Prusty, Writing by Manoj Kumar, Editing by William Maclean) ((mailto:manoj.kumar@thomsonreuters.com; +91 11 4954 8029; Reuters Messaging: rm://manoj.kumar.thomsonreuters.com@reuters.net))