PANCHKULA: After more than five years of investigation and trial, a special court of the Central Bureau of Investigation in Panchkula has delivered verdicts and prison sentences in a ₹152-crore Canara Bank fraud case, detailing how loan funds were allegedly siphoned off through shell entities and diverted from their stated purposes.
A Case That Began With a Bank’s Complaint
The case traces its origins to July 14, 2020, when the Central Bureau of Investigation (CBI) registered a criminal case on the basis of a complaint from Canara Bank’s Circle Office in Karnal, Haryana. The bank alleged that two firms—SRS Real Estate Ltd and SRS Real Infrastructure Ltd—had, in conspiracy with their directors and associates, fraudulently obtained large credit facilities and diverted the proceeds for purposes unrelated to those for which the loans were sanctioned.
According to the complaint, the overall exposure amounted to ₹152 crore. Investigators later alleged that the borrowing companies misrepresented their financial position and the end-use of funds, leading to substantial losses for the public sector lender.
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Findings of the Investigation
CBI investigators concluded that SRS Real Infrastructure Ltd had fraudulently availed a credit limit of ₹42 crore, causing a wrongful loss of ₹41.95 crore to Canara Bank. In a parallel set of transactions, SRS Real Estate Ltd was found to have obtained loans worth ₹110 crore.
A significant portion of these funds, investigators said, was diverted through shell companies that had no genuine business activity. The CBI alleged that ₹93.20 crore was routed in this manner, effectively severing any link between the borrowed money and the projects for which it was ostensibly sanctioned.
The investigation culminated in the filing of two separate chargesheets on December 31, 2022. These detailed the alleged conspiracy, the documentary trail of fund movements, and the roles attributed to various directors and associates of the companies.
Trial, Convictions and Sentences
Following the trial, the court convicted all the accused on December 22, 2025, and pronounced sentences on January 13. The special CBI court in Panchkula convicted both SRS Real Estate Ltd and SRS Real Infrastructure Ltd, along with six of their directors.
CBI Judicial Magistrate Anil Kumar Yadav held Anil Jindal, Bishan Bansal, Nanak Chand Tayal and Rajesh Singla guilty under Section 420 of the Indian Penal Code, which deals with cheating and dishonestly inducing delivery of property. Each was sentenced to five years of rigorous imprisonment.
Seema Narang and Dheeraj Gupta were convicted under Sections 120-B (criminal conspiracy), 420, 468 (forgery) and 471 (using as genuine a forged document) of the IPC. They were sentenced to four years of rigorous imprisonment. The court directed that all sentences would run concurrently.
Proceedings Inside the Courtroom
During the sentencing hearing, some of the convicted individuals sought permission to continue medical treatment while in custody. Anil Jindal, Nanak Chand Tayal and Seema Narang cited health reasons in their pleas to the court.
The magistrate allowed these requests, directing the jail superintendent to ensure that medicines were provided in accordance with jail rules and doctors’ prescriptions. The order underscored procedural safeguards even as the court imposed custodial sentences.
