The Central Bureau of Investigation (CBI) on Friday carried out coordinated searches at 10 locations in connection with an alleged ₹105.44 crore bank loan fraud involving NCS Sugars Limited. During the operation, investigators seized a large number of documents and digital devices from premises linked to the company, its directors and other individuals under investigation. The searches were conducted as part of an ongoing probe into an alleged fraud involving Punjab National Bank (PNB).
According to the CBI, the searches covered the company’s factory, registered office and residential premises associated with its directors in Hyderabad, Vizianagaram and Kakinada. Officials recovered several documents, electronic records and digital evidence believed to be relevant to the investigation. The seized material is now undergoing forensic and financial examination to establish the full extent of the alleged conspiracy.
The agency said the case was registered by the CBI’s Banking Securities and Fraud Branch in Bengaluru based on a complaint filed by Punjab National Bank’s Chennai branch. The complaint alleges that NCS Sugars Limited and its directors obtained various credit facilities by submitting forged documents to the bank and presenting them as genuine.
According to the First Information Report (FIR), after securing the loans, the accused allegedly diverted the funds instead of using them for the intended business purposes. Investigators claim the loan amount was misappropriated, resulting in a wrongful loss of ₹105.44 crore to Punjab National Bank. The loan accounts later became irregular and eventually slipped into default due to non-repayment.
The CBI said investigators are conducting a detailed examination of the seized documents and digital records to trace the movement of funds, identify the beneficiaries and determine the specific roles of all individuals involved. The agency is also analysing financial transactions to establish how the money was allegedly diverted after disbursement.
The case is being investigated under charges including criminal conspiracy, cheating, criminal breach of trust, misappropriation of property and forgery. Investigators are also examining whether any unidentified public servants may have played a role in the alleged fraud. If evidence of such involvement emerges during the investigation, appropriate legal action will be taken.
According to the agency, electronic evidence recovered during the searches—including emails, financial records and digital data—will play a crucial role in reconstructing the sequence of events. Investigators aim to determine how the allegedly forged documents were prepared, how the credit facilities were sanctioned and how the loan proceeds were subsequently utilised.
This is not the first time NCS Sugars Limited has come under the scanner of investigating agencies. In 2017, at least two company officials were booked by the CBI in a separate case involving the alleged defrauding of Project and Equipment Corporation of approximately ₹82.11 crore. However, the present investigation is independent of that case and relates specifically to the alleged financial loss suffered by Punjab National Bank.
The CBI said scrutiny of the seized evidence is continuing and that further action will depend on the findings of the investigation. If additional individuals or entities are found to have been involved in the alleged conspiracy, they may also face legal proceedings. The agency stated that it remains committed to conducting a comprehensive and impartial investigation into the alleged organised bank loan fraud and ensuring accountability for all those found responsible.
