The CBI carried out a search at the residence of Congress MLA Raghuraj Singh Kansana in Madhya Pradesh's Morena in connection with a bank fraud case in which his nephew is an accused, officials said on Wednesday.

Kansana's nephew Kushal Singh has been booked by the CBI for allegedly availing loan from UCO Bank on the basis of forged documents causing a loss of Rs 8.08 crore to the public sector lender.

'My nephew runs a warehouse for which he had taken a loan. The CBI team had come to our ancestral house in Morena, Madhya Pradesh, to seek documents. The bank manager is an accused in the case. This could be a political conspiracy to defame me,' Kansana told PTI over phone.

The agency also searched the warehouse owned by Kushal.

Besides Kushal, the agency has also named then chief manager R. K. Sinha as an accused in the case.

'Warehouse owner fraudulently issued warehouse receipts in the name of different persons for availing loan against those receipts and released and removed pledged goods without having release orders from UCO Bank,' an official said quoting the FIR.

He said most of such receipts were issued in the names of the warehouse owner's employees, relatives, etc.

During physical inspection of stock by a team appointed by the zonal office, it was found that the stock of commodities was much less than what the warehouse had submitted to the bank, he said.