PSU Bank filed CBI complaint in Rs.16 Crore Fraud case

 In a significant ₹16-crore bank fraud case involving Punjab Lightning Industries Limited, situated in Industrial Area, Phase 2, Mohali, the Central Bureau of Investigation (CBI) has formally filed a chargesheet. The trial will start on June 4, 2025, at a special CBI court in Chandigarh. The case was first registered on June 27, 2024.

How the Bank Fraud Happened

According to the CBI’s chargesheet, the company’s directors Vinay Gupta and Urvashi Gupta had taken a loan of nearly ₹16 crore from Punjab National Bank (PNB). The loan was meant for the business’s working capital and commercial activities. However, instead of using the money for the business, they allegedly diverted the funds for personal use and to pay off loans of other companies owned by them.

What the Bank Discovered

The fraud came to light after the company stopped repaying the loan, which raised concerns at the bank. Punjab National Bank then conducted an internal investigation, which revealed shocking findings. During the audit of the company’s unit in Mohali, it was discovered that:

• No production was going on at the factory.
• There was no raw material or finished goods on site.
• The factory had been shut down for several months.

Misuse of Loan for Buying Property

The audit further revealed that Vinay Gupta used part of the loan amount to buy a house in Sector 15-A, Chandigarh, and the property was registered under his son’s name. He also bought another property in Sector 11, which clearly indicated that the funds were not being used for the business, but rather for personal gains.

Legal Action and CBI Investigation

Following the internal audit, PNB filed a complaint with the CBI, as the evidence pointed toward intentional default by the company directors. After investigating the matter, the CBI charged them under:

• Section 420 of the Indian Penal Code (IPC) – for cheating.
• Section 120-B of the IPC – for criminal conspiracy.
• Relevant sections of the Prevention of Corruption Act.

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The CBI opened a criminal probe into the Rs 12.08 crore Bank of India fraud

 

Five officials of a private construction company are the subject of a criminal probe by the Central Bureau of probe (CBI). These officers are charged with defrauding the Bank of India, resulting in a ₹12.08 crore loss. 

 The executives allegedly broke key terms of the loan arrangement and misappropriated the bank's loan funds, according to CBI sources. After a complaint was submitted by the deputy general manager of the Bank of India's Asset Recovery Management Branch in Andheri West, the case became public knowledge. The CBI began its investigation as a result.

The Bank of India claims that the construction firm and its directors defrauded the bank by not depositing the sale proceeds from flats and shops in its Navi Mumbai real estate projects, as required by the loan agreement. 

The bank’s complaint states that instead of following the terms, the firm sold the properties without obtaining the necessary No Objection Certificates (NOCs) from the bank, which is a key condition.

The CBI has filed the case under sections of the Indian Penal Code and the Prevention of Corruption Act. These charges include criminal conspiracy, cheating, misappropriation of funds, and diversion of funds. 

According to the complaint, the bank’s loss due to this fraud was estimated to be ₹12.08 crore, as of December 2021. The CBI will investigate the bank’s credit transactions with the firm from July 2013 to December 2021, which were used to finance the company’s construction projects in and around Navi Mumbai.

The bank claims that according to the loan’s terms, the construction firm was supposed to obtain NOCs from the bank before selling any of the flats or shops in their projects. Additionally, the sale proceeds were supposed to be deposited with the bank. However, the firm failed to comply with these conditions, as stated in the bank’s complaint.

Loan Account Classified as Non-Performing Asset

The firm’s loan account was marked as a non-performing asset (NPA) on March 31, 2016, following standard banking procedures. Later, a demand notice was issued under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002. The loan was also officially classified as “fraud” in September 2024 by the Competent Authority, in line with a Supreme Court ruling from 2023.

The CBI’s investigation is continuing as it looks into the full extent of the financial wrongdoing and the involved officials’ roles in the matter.

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CBI Arrests Bank Manager for Taking Bribe

The branch manager of Baroda UP Bank's Sikhola branch in Azamgarh was detained by the Central Bureau of Investigation (CBI) as he was taking a ₹20,000 bribe. The offender was apprehended while requesting money from an account holder in order to permit the withdrawal of funds from a sanctioned loan. 

The complainant had taken out a loan under the Dairy Loan and Kisan Credit Card (KCC) programs, according to CBI authorities. According to reports, the branch manager wanted a payment of ₹20,000 when he went to the bank to withdraw the authorized amount. The manager informed the complainant that he would not be able to access his loan funds if he did not make the payment. The victim, distressed by the demand, informed the CBI of the situation.

The CBI promptly responded to the complaint after registering the case on March 12, 2025. The CBI's Anti-Corruption Branch set up a trap on March 11, 2025, and apprehended the accused as he accepted the money. 

 The manager was taken into custody right away and is currently being brought before the Lucknow special CBI court. 

 This episode brings to light a recurring problem in the banking industry, especially in rural areas, where officials are allegedly demanding bribes in order to execute loans under government programs. When attempting to obtain their legitimate payments, farmers and small borrowers frequently encounter exploitation by crooked officials and middlemen.

According to CBI officials, the probe is still underway and further information could come to light. It's possible that additional officials are engaged in similar dishonest activities. Call for Public Reports of Corruption Both the CBI and the bank administration have called on the public to report any bribery demands made by bank officials in the wake of this case. 

 Authorities have promised that dishonest staff will face harsh consequences. It is anticipated that this crackdown will send a powerful message and make those engaged in such immoral actions fearful. Concerns over the integrity and transparency of banking operations have also been brought up by the case, particularly in rural areas where farmers depend on loans to make a living. The action taken by the CBI is regarded as an important milestone in the fight against corruption.

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CBI Registers Case Against ZM and other officials of PSU bank in Corruption Case

The Central Bureau of Investigation (CBI) has filed a corruption complaint against three former senior Bank of India (BOI) officials in a recent development. The Lokpal, India's anti-corruption watchdog tasked with looking into claims of wrongdoing against officials of the central government, has directed this action.

Based on a complaint that had been made the previous year, the case was started following Lokpal's ruling on August 29. Lokpal gave the CBI instructions to look into three former BOI officers' and other unidentified people's possible involvement in a corruption offence. The chief manager of the Satara branch, the deputy zonal manager of the Kolhapur zone, and the previous zonal manager of the Kolhapur zone are the three authorities. The inquiry also includes any potential involvement from unidentified private citizens and official employees. In accordance with certain provisions of Indian law, the CBI filed a case, which included:

* Section 420 of the Indian Penal Code (IPC): This covers cheating and criminal conspiracy.Section 7 of the Prevention of Corruption Act: This focuses on the abuse of official position by public servants.

* These charges indicate serious allegations of misconduct, with the officials accused of abusing their positions for personal gain.

The complainant's and the accused public workers' identities must be kept private per the Lokpal's direction. This is compliant with the Lokpal (Complaint) Rules, 2020, which are designed to safeguard the parties' identities for as long as necessary to comply with legal requirements. This case highlights the continuous endeavors of anti-corruption organizations in India to make public servants responsible for their abuse of authority. In the upcoming days, more information should become available as a result of the investigation.

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