Mumbai, October 12, 2026: The Central Bureau of Investigation has initiated an investigation against a private company involved in the textile business for allegedly cheating Punjab National Bank to the tune of crores of rupees.
The borrower company and its directors, with fraudulent and dishonest intentions, diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned, agency officials claimed.
Bank Alleges Fraud Of Rs 9.62 Crore
According to the CBI, a complaint was received from Deva Kumara Y.N., Chief Manager, Punjab National Bank, Asset Recovery Management Branch, Bandra (East), alleging that the borrower company, its directors and guarantors, in connivance and in furtherance of a criminal conspiracy with unknown public servants and unknown private persons, had committed offences of cheating, criminal conspiracy and misuse of official position by a public servant, and induced the bank to sanction and disburse credit limits to the borrower, thereby causing a wrongful loss of Rs 9.62 crore.
Fake Financial Details Allegedly Submitted
The Dadar-based borrower company was involved in textile trading. Its directors and guarantors, in connivance with other unknown persons, allegedly dishonestly and fraudulently induced the bank in 2013 by submitting fake financial position details and misleading information at the time of sanctioning working capital facilities.
Furthermore, the borrower availed itself of cash credit limits on the basis of inflated valuation of collateral security. The inflated valuation directly influenced the loan sanctioning process, resulting in the disbursement of funds disproportionate to the real worth of the collateral.
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Loan Account Declared NPA In 2013
"Over the period of time, the bank observed that the borrower failed to adhere to the terms and conditions of the sanction letter, made defaults in paying interest and did not submit stock, book debts statements since June-July 2013. 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 NPA in September 2013 by the bank and the account was reported as fraud by the bank to the RBI in August 2025," said a CBI official.
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