The Central Bureau of Investigation has conducted coordinated searches at several locations in Hyderabad and Odisha in connection with an alleged ₹48.48 crore bank fraud involving Punjab National Bank in Bengaluru.
The case has been registered against PCH Corporation Ltd and PCH Retail Ltd, their directors and unknown public servants following a complaint by PNB Bank, Chennai. The allegations include criminal conspiracy, cheating and causing wrongful loss to the bank.
What Is the ₹48.48 Crore Fraud Case?
The case concerns an alleged wrongful loss of ₹48.48 crore to Punjab National Bank.
The allegations relate to PCH Corporation Ltd and PCH Retail Ltd, along with their directors and unknown public servants. The case involves alleged offences of criminal conspiracy and cheating.
What Did PNB Allege in Its Complaint?
The bank alleged that the accused acted with mala fide intention and disposed of the entire hypothecated stocks of their business without informing the lender banks.
It was further alleged that the proceeds from the sale of those stocks were not routed through the loan accounts maintained with the banks.
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How Were Funds Allegedly Misappropriated?
The allegation is that the sale proceeds from the hypothecated stocks were not deposited through the relevant loan accounts and were instead misappropriated.
The borrower company and its directors have been accused of cheating, criminal breach of trust, criminal misappropriation and criminal conspiracy.
Where Did the CBI Conduct Searches?
The CBI carried out searches at several locations in Hyderabad and Odisha.
The premises searched included the residential properties of directors of PCH Corporation Ltd and PCH Retail Ltd.
What Did the CBI Recover?
Investigators recovered and seized incriminating documents and digital evidence during the searches.
The seized material includes records considered relevant to the investigation. Authorities are now scrutinising the material as part of the continuing probe.
What Is the CBI Investigating Now?
Investigators are examining the seized records to determine the full scope of the alleged criminal conspiracy
The scrutiny is also aimed at tracing the alleged diversion and movement of funds and determining the specific roles of the people involved in the case.
The investigation is now focused on the documents and digital evidence seized during searches in Hyderabad and Odisha. Their examination could help investigators trace the alleged movement of funds and establish the individual roles in the suspected ₹48.48 crore bank fraud.
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