Other States

Enforcement Directorate conducts searches in Punjab in bank fraud case

The Enforcement Directorate on Wednesday conducted searches against a company and its related entities in Chhattisgarh in connection with a bank fraud running into crores. The searches were part of the probe on the basis of an FIR registered by the Central Bureau of Investigation in December 2018. The CBI had lodged the case on a complaint from the Central Bank of India, on behalf of a consortium involving the Punjab National Bank and Axis Bank.

The accused company had first approached a Raipur branch of the Central Bank of India for credit facilities to the tune of ₹10 crore. The credit facility was sanctioned in March 2014 by the consortium and it was restructured in December the same year. However, due to non-payment of dues, the loan account was declared non-performing assets.

The banks initiated an inquiry that the company did not have any business income before it had received the credit facilities from the consortium. It, through its then directors, diverted the funds to various companies without undertaking any business activity with them, as alleged. Round-tripping of funds was also suspected.

Based on the findings, the complainant bank had also declared two other loan accounts of related entities as fraud in April 2016 and June 2017.

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Printable version | May 26, 2020 7:02:20 PM | https://www.thehindu.com/news/national/other-states/enforcement-directorate-conducts-searches-in-punjab-in-bank-fraud-case/article30281871.ece

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