In a significant development in the ₹100 crore Punjab National Bank (PNB) loan fraud case, a special court on Friday granted bail to 11 accused. The court observed that the investigation has been completed, all crucial evidence has already been seized, and there is no requirement to keep the accused in custody for further interrogation. The decision is being seen as an important turning point in the case.
In near-identical orders for all accused, Special Judge J. P. Darekar recorded that none of the accused were arrested during the course of the investigation. They had appeared before the court after summons were issued following the filing of the charge sheet. The court clearly noted that “nothing remains to be recovered or discovered” from the accused, and therefore their judicial custody was not warranted.
Details of the ₹100 Crore PNB Loan Fraud
The case pertains to loans sanctioned between 2013 and 2017 to Siddhi Vinayak Logistics Limited. According to the allegations, the company and its promoters secured loans of nearly ₹100 crore from the bank in the name of purchasing 335 commercial vehicles. Investigators claim that the process involved misrepresentation and the use of forged documents, leading to substantial financial losses for the bank.
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Preliminary findings indicate that out of the vehicles cited for the loan, records for only around 240 vehicles were found to be valid. Several vehicles were either financed through other sources or could not be traced. This discrepancy allegedly caused a loss of approximately ₹87.46 crore to the bank, highlighting the magnitude of the fraud.
Accused Include Promoters and Bank Officials
Those granted bail include the company’s promoters and directors—Roopchand Baid, Deepak Kumar Baid, Rajkumar Roopchand Baid, and Laxmidevi Baid. Other business associates linked to the case have also been named as accused, with allegations of assisting in the loan process and playing roles in the irregularities.
The case also involves certain former and serving bank officials. It has been alleged that due diligence during the sanctioning and disbursement of loans was compromised, which enabled the execution of the fraud. However, while considering the bail applications, the court clarified that although the allegations are serious, continued custody is not justified once the investigation is complete.
Prosecution’s Arguments and Court Observations
The prosecution had argued that all accused acted in criminal conspiracy to defraud the bank by using false representations and bogus documents. It was further alleged that after availing the loans, the funds were misused and the assets were not fully hypothecated in favor of the bank.
In its order, the court acknowledged the seriousness of the charges, including fraud and conspiracy, but emphasized that the evidence collected during the investigation has already been secured. Therefore, there is no strong basis to justify custodial interrogation at this stage.
The investigation in the case began after an FIR was registered in December 2022. Since then, a detailed financial probe was conducted to examine the loan sanctioning process, vehicle purchases, and the utilization of funds. Investigators collected key evidence, including bank records, company documents, and financial transaction trails.
Following the court’s decision, all accused will remain out on bail as the trial proceeds. The future course and outcome of this high-profile banking fraud case will depend on the evidence presented and the testimonies examined during the trial.
