New Delhi: In a major case of bank fraud, the Central Bureau of Investigation (CBI) on Saturday expanded the scope of investigation by raiding several locations simultaneously. CBI's Bank Securities and Fraud Branch, Bengaluru has registered a case against M S PCH Corporation Limited, M S PCH Retail Limited, their directors and some unidentified government employees.
Case registered on the basis of complaint
This action was taken in a case registered on the basis of the complaint of Punjab National Bank (PNB), Chennai. It is alleged that the concerned companies caused a loss of about Rs 48.48 crore to the bank. According to the FIR, the accused allegedly sold the trading stocks mortgaged to the bank without informing the lending banks and diverted the sale proceeds instead of depositing them in the respective loan accounts.
Many allegations came to light
According to CBI, prima facie allegations related to criminal conspiracy, fraud, criminal breach of trust and alleged embezzlement of funds have emerged in the case. The investigating agency conducted a coordinated search operation at several locations in Hyderabad and Odisha on September 19. These also included the residential premises of directors of PCH Corporation and PCH Retail. During the search, important documents and digital evidence related to the investigation have been recovered and confiscated. Now, through their investigation, efforts are being made to find out the entire chain of the alleged conspiracy, the direction of money transactions and the alleged use of the money.