Mumbai, Feb 04: The Central Bureau of Investigation (CBI) has booked a private company and its directors for allegedly cheating Punjab National Bank (PNB) to the tune of Rs 10.14 crore by misrepresentation of data and fraudulent diversion of funds disbursed under credit facilities sanctioned by the bank.
Complaint by PNB official
According to the CBI, a complaint was received from Amrit Pal Singh, Chief Manager, PNB, Assets Recovery Management Branch, Thane, alleging that the borrower company and its two directors, in criminal conspiracy with unknown bank officials and private persons, cheated PNB of Rs 10.14 crore.
Alleged conspiracy and misrepresentation
“The complaint discloses that the borrower company, situated at Masjid Bunder, was involved in the trading of all kinds of merchandise, including textiles and fabrics. It is alleged that the company, its directors and others entered into a criminal conspiracy during the period 2012 to 2013 with the intent to cheat PNB, Vashi branch, to avail loans by way of misrepresentation of data and fraudulent diversion of the funds disbursed under credit facilities sanctioned by the bank,” a CBI official said.
Inflated valuations and false documents
“In pursuance of the said criminal conspiracy, the accused persons dishonestly and fraudulently got sanctioned a working capital loan facility of Rs 9.75 crore from PNB. The borrower company and its directors, with fraudulent and dishonest intentions, submitted inflated and false valuation reports of collateral properties and also fabricated financial statements of directors for sanctioning of the credit facility,” the official said.
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Funds diverted, account declared NPA
“The accused persons fraudulently diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned. Thus, the accused partners misappropriated the bank funds and thereby caused wrongful loss of Rs 10.14 crore to the bank and corresponding wrongful gains to themselves. The directors of the borrowing company failed to service the instalments and interest of the loans, and accordingly, the account of the company was classified as a non-performing asset (NPA) in 2013. The account was reported as fraud in July 2025,” the official added.
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