CBI Books Navi Mumbai Firm for Alleged Rs 8.28 Crore Fraud on PNB in Thane

The Economic Offences Branch of the Central Bureau of Investigation (CBI) in Mumbai has registered a case against a Navi Mumbai-based firm, its two directors, and guarantors for allegedly defrauding the Punjab National Bank Asset Recovery Management Branch in Thane of Rs 8.28 crore.

The action follows a formal complaint lodged by Rinu E. F., Chief Manager at the Punjab National Bank (PNB) Asset Recovery Management Branch in Thane. The complaint alleges that the borrower company, which engaged in trading merchandise including building materials, conspired with unknown public servants and private individuals to fraudulently secure credit facilities.

According to the CBI, the accused entered into a criminal conspiracy between 2012 and 2013. During this period, they allegedly induced the bank through misrepresentation of facts at the time of loan sanctioning. The borrower availed of a cash credit limit of Rs 8 crore by submitting an inflated valuation of a mortgaged property.

Investigators stated that the borrower company and its directors acted with dishonest intentions by diverting and utilising the disbursed bank funds for purposes other than those officially sanctioned.

Over time, bank officials noted that the borrowers failed to comply with the terms and conditions outlined in the sanction letter. The company defaulted on interest payments and ceased submitting required stock reports and book debt statements starting in July 2013.

Due to the continuous failure of the directors to service the loan instalments and interest, PNB classified the company's account as a non-performing asset (NPA) in September 2013. The bank subsequently reported the account as fraud to the Reserve Bank of India in July 2015.

The CBI's investigation is examining the misappropriation of funds that resulted in an alleged wrongful loss of Rs 8.28 crore to PNB and a corresponding wrongful gain to the accused company and its directors.