CBI Raids 10 Locations in ₹105.44 Crore Punjab National Bank Fraud Case

New Delhi I Special Correspondent : The Central Bureau of Investigation (CBI) on Friday carried out coordinated search operations at 10 locations across Andhra Pradesh and Telangana in connection with an alleged ₹105.44 crore bank fraud involving Punjab National Bank (PNB). The searches are part of an ongoing investigation into allegations of criminal conspiracy, cheating, forgery, criminal breach of trust, and diversion of loan funds by M/s NCS Sugars Ltd., its directors, and unknown public servants.

According to the CBI, the case was registered by the Banking Securities and Fraud Branch (BSFB), Bengaluru, following a complaint lodged by Punjab National Bank, Chennai. The complaint alleged that the accused company and its directors fraudulently obtained bank credit facilities by submitting forged documents and later diverted the sanctioned funds instead of using them for legitimate business operations.

Allegations of Forged Documents and Loan Diversion

The investigation revealed that the accused allegedly presented fabricated and forged financial documents to the lending bank while applying for credit facilities. These documents were allegedly projected as genuine, enabling the company to secure substantial financial assistance from Punjab National Bank.

Investigators suspect that after obtaining the loans, the company failed to utilize the funds for the intended business purposes. Instead, the money was allegedly diverted and misappropriated, resulting in significant financial losses for the lending institution.

The CBI stated that the company subsequently defaulted on repayment obligations, causing the loan accounts to become irregular and eventually classified as non-performing assets (NPAs). The alleged fraudulent activities resulted in a wrongful loss of ₹105.44 crore to Punjab National Bank.

Searches Conducted at Multiple Premises

As part of the investigation, CBI teams simultaneously searched 10 locations in Hyderabad, Vizianagaram, and Kakinada.

The premises covered during the operation included:

• The manufacturing unit of M/s NCS Sugars Ltd.
• The company’s registered office.
• Residential properties linked to the directors of the company.
• Other locations believed to be connected with the alleged financial transactions.

Officials said the coordinated searches were aimed at collecting documentary and electronic evidence related to the alleged fraud.

Digital Evidence and Documents Seized

During the raids, investigators recovered and seized several incriminating documents, financial records, electronic devices, and digital evidence considered relevant to the ongoing investigation.

According to the CBI, the seized materials are now being examined to:

• Establish the full extent of the alleged criminal conspiracy.
• Trace the diversion and movement of loan funds.
• Identify beneficiaries of the diverted money.
• Determine the role of each accused individual and any other persons involved.
• Examine whether public officials played any role in facilitating the alleged fraud.

Officials believe the digital evidence could provide crucial insights into financial transactions, internal communications, and the alleged misuse of bank funds.

Charges Registered

The CBI has registered the case under various provisions relating to:

• Criminal Conspiracy
• Cheating
• Criminal Breach of Trust
• Misappropriation of Property
• Forgery
• Use of Forged Documents

The investigation also includes allegations against unknown public servants, whose role will be examined during the course of the probe.

Financial Fraud Under Scanner

Bank frauds involving diversion of loan funds continue to remain a major concern for financial institutions in India. Investigating agencies have increasingly intensified action against companies accused of obtaining loans through forged documents and subsequently defaulting after allegedly siphoning off public money.

Officials said cases involving fraudulent borrowing not only impact banks financially but also weaken the integrity of the country’s banking system, affecting genuine borrowers and public confidence.

Investigation Continues

The CBI has confirmed that scrutiny of the seized records is underway and further investigation is in progress.

Investigators are expected to analyze financial transactions, banking records, digital communications, and company documents to establish the complete money trail and identify all individuals responsible for the alleged fraud.

Officials have indicated that additional legal action may follow depending on the evidence uncovered during the investigation.

The agency has reiterated its commitment to thoroughly investigating large-scale financial frauds and ensuring accountability for offences that cause substantial losses to public sector banks.