(Image source from: Pymnts.com)

The Central Bureau of Investigation (CIB) has three different loan fraud cases that are linked to PNB. Two cases are from the companies based from Nagpur and the other case is by a company from Bhubaneswar. The total fraud attempt from these two companies summed up is Rs 125 crore.

The investigation team filed a case against the Nagpur based company, Linkson Ispat and Energies Pvt Ltd.The company’s chairman cum Managing Director, Yashwant Sangla is also playing a role as Director in Linkson International Ltd. He is alleged to attempt the combined fraud that comes to Rs 93 crore amount of loan. CBI filed the case identifying his fraud act through the diversion of loans funds and cheating.

Officials of PNB are being interrogated as they failed to follow the banking guidelines. The bank officials are totally responsible as they led the frauds with conspiracy.

CBI registered a case on June 9 after digging the fact that the bank officials are engaged with a private company Global Training Solutions, said the statement.

An FIR filed related to this case showing the evidence that bank fraud was carried in processing, sanctioning and disbursing the cash. Credit facility and bill discounting along with issuing the letters of credit to the company was in between the years 2010-2015.

The forensic audit report maintained by PNB is undeniable evidence of transferring the funds from the bank to other companies.

CBI said “Bank officials also did not verify the genuineness of business activities of Global Trading Solutions”. This led to a 31.92 crore fraud act which is a loss to Punjab National Bank.

Anti Corruption Brand of CBI received a complaint in regards with this from PNB in March. Bank complaint was against the company directors who were suspected for a loss of Rs. 62.92 crore.

CBI said that “There was inconsistency reported in the debtor balances, varied utilisation of LoC, unexplained diversion of funds. Use of loan for investments. Forged documents submitted to the financial institutions”.

In 2018, Nirav Modi and his uncle Mehul Choksi cheated PNB of nearly US $2 Billion by getting the Letter of Undertakings unlawfully.

Post finding the bank fraud cases, CBI has been active with probing big banks in the country. CBI registered 159 banking frauds and cheating cases worth 44,000 crore just in between 2017-2019.

By Ramya C