ED has arrested a Bank of India(BoI) officer in a fraud case for Rs 16.10 crore

In accordance with the Prevention of Money Laundering Act, 2002 (PMLA), Hitesh Kumar Singla, an officer of Bank of India, was taken into custody by the Directorate of Enforcement (ED), Mumbai, from Ahmedabad Junction Railway Station. Bank of India had previously suspended the officer. 

 After his appearance before the Greater Bombay Special PMLA Court, he was given seven days of ED detention. Under Sections 13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988, Section 409 of the Indian Penal Code, and Section 316(5) of the BNS, the CBI had brought a case against Singla and Others.

As the case involved money laundering, it was transferred to ED and ED started its investigation.

Investigations revealed that between May 2023 and July 2025, Singla fraudulently closed multiple accounts—including Term Deposits (TDs), Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Savings Bank (SB), and Current Accounts (CA)—without authorization. The funds were then diverted to his personal SBI savings accounts.

According to the ED, Singla deliberately targeted 127 account holders, mostly vulnerable customers such as senior citizens, minors, deceased persons, and dormant account holders, to avoid detection.

The diverted funds were layered and transferred in small, concealed transactions, causing a total loss of ₹16.10 crore to Bank of India and its customers, while severely damaging the bank’s reputation and public trust.

Singla had been evading the bank and not reporting since the crime was discovered. At Ahmedabad Junction, ED apprehended him based on technical surveillance and intelligence inputs. He was detained despite his repeated attempts to avoid detection by switching carriages and seats on Train No. 19320 Mahamana Express (Ujjain–Veraval).

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CBI Investigates ₹121 Crore Fraud in Gujarat, Complaint lodged by BOI

Three sites in Ahmedabad and Gandhinagar have been searched by the CBI in relation to a ₹121 crore bank scam involving the city-based company Anil Bioplus. Incriminating documents were seized as a result of the Wednesday raids. 

The CBI has charged the firm and its directors, Amol Shripal Sheth, Darshan Mehta, and Nalin Thakur, in response to a complaint filed by the Bank of India. 

 Based on a complaint received from Bank of India against M/s. Anil Bioplus Ltd., a private company based in Ahmedabad, its three directors—Amol Shripal Sheth, a full-time director; Darshan Mehta, a full-time director; and Nalin Thakur, a director—as well as unidentified public employees and other unidentified individuals, the Central Bureau of Investigation (CBI) opened a case on September 8, 2025.

The lawsuit alleges that the directors of a private company situated in Ahmedabad conspired with unidentified Bank of India personnel with the malicious purpose to cause the bank to suffer an unjustified loss of Rs. 121.60 crores.

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Big Fraud of Rs.1,396 Crore Fraud in Bank of India(BOI) and Other Banks

On August 30, 2025, the Shimla-based Directorate of Enforcement (ED) conducted search operations in Bhubaneswar, Odisha, as part of a large-scale bank fraud and money laundering case involving M/s Indian Technomac Company Ltd (M/s ITCOL). In addition to the business establishments of M/s Anmol Mines Pvt. Ltd. (AMPL) and M/s Anmol Resources Pvt. Ltd. (ARPL), the searches were carried out at the residence of Shakti Ranjan Dash, Managing Director of these companies. The action was carried out in accordance with the Prevention of Money Laundering Act (PMLA), 2002.

The Himachal Pradesh Police CID filed a formal complaint (FIR) alleging that M/s ITCOL's directors conspired with corporate officials and chartered accountants to embezzle bank loans approved by a group of banks. According to ED findings, M/s ITCOL submitted fabricated project reports and displayed fictitious sales to dummy/shell firms in order to fraudulently obtain loans from a consortium managed by the Bank of India between 2009 and 2013. The loans were diverted elsewhere rather than being used for approved reasons. The estimated value of the suspected scam is ₹1,396 crore.

The ED had already seized assets totaling ₹310 crore in April 2025, of which ₹289 crore had been returned to the group of banks headed by Bank of India. According to the most recent inquiry, M/s ITCOL and its shell companies transferred ₹59.80 crore into M/s Anmol Mines Pvt. Ltd.'s (AMPL) bank accounts. The managing director of AMPL, Shakti Ranjan Dash, has been charged by the ED with willfully aiding Rakesh Kumar Sharma, the founder of M/s ITCOL, in money laundering by directing cash into mining operations in Odisha.

Investigators found that Shakti Ranjan Dash subsequently integrated the diverted money into AMPL’s accounts and recorded it as legitimate business income, thereby attempting to project “proceeds of crime” as clean money.

During the Bhubaneswar raids, the ED seized many luxury vehicles, cash,jewellery and property. Two lockers belonging to Dash were also frozen.

The ED confirmed that the seized assets belong to Shakti Ranjan Dash and his associated companies. Officials emphasized that the investigation is ongoing and further action will follow as evidence is scrutinized.

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BOI Classifies Loan Account of Reliance Communications as ‘Fraud’

 

Reliance Communications Limited, its promoter and former director, Shri Anil Dhirajlal Ambani, and its former director, Smt. Manjari Ashok Kacker, have had their loan accounts classified as "fraud" by Bank of India.

The Bank of India has also decided to label the loan accounts of RTL (the company's subsidiary), Smt. Grace Thomas (the former director of RTL and current director of the company), and a few other individuals (named in the RTL Letter) as "fraud." This decision was communicated in a letter to Reliance Telecom Limited (RTL), a subsidiary of the company.

Bank of India approved a 700 crore rupee term loan. As of 07/08/2025, there were 724.78 crores that were still owed. The loan was approved to cover a short-term discrepancy brought on by investments made in the purchase of 3G spectrum and associated capital expenditures. There was no guarantee when the loan was approved.

On June 30, 2017, the borrower's account became non-performing, with Rs 724.78 crores still owed. Although the Bank has been pursuing the borrowers and guarantors to collect the debt, they have not fulfilled their obligations.

Through M/s BDO India LLP, the bank carried out a forensic audit after the account became non-performing. The appropriate authority was presented with the results of the forensic audit. The following observations, findings, and conclusions of the forensic audit have led the competent authority to conclude that there are suspected fraudulent connotations after reviewing the audit:

In accordance with the review letter, Bank of India paid RCOM INR 350.00 Crores in a letter dated October 3, 2016, for "ongoing Capital exp, operational expenditure, repayment of existing liabilities other than related party / shareholder loans."

Loan Diversion: Fixed deposits totaled INR 350.00 crores.

A loan of Rs. 350 Cr was raised by the BOI on March 27, 2015, to cover spectrum fees. MF held the loan amount until April 7, 2015.A loan of Rs. 310.00 Cr was raised by SCB on March 30, 2015. FD was made on April 7, 2015, for a total of Rs. 632.50 Cr (BOI Rs. 350 Cr + SCB Rs. 310 Cr). RCOM obtained an equivalent loan of Rs. 632.50 Cr from BOI in order to pay the DOT Government of India for the Spectrum fees in relation to the aforementioned FD.

FD was liquidated on June 11, 2015, and the Rs. 632.50 Cr BOl loan was paid back. The payment of operational expenses was made with the full amount of the BOI loan.

The sanction letter stated that using the loan funds to invest in fixed deposits was prohibited; therefore, this is regarded as non-compliance with sanction terms of the loan.

Borrower requested that the company is undergoing Corporate Insolvency Resolution Process (CIRP) and thus the account should not be classified as Fraud.

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In Loan Fraud Case, Female Branch manager of PSU Bank suspended in Uttar Pradesh

At the Punjab National Bank (PNB) branch in the Shernagar region, a significant fraud case has been discovered. A female bank manager assigned to the branch has been charged with defrauding the bank by abusing her position and using fictitious documentation to obtain a Rs 40 lakh home loan. 

 An internal investigation was started by the bank management as soon as the issue was discovered. The accused bank officer was immediately suspended from her position after it was confirmed that fraud had definitely occurred. 

 Additionally, the bank has accused her of fraud and breach of trust in a First Information Report (FIR) that was submitted to the police station. Police are currently pursuing legal action against her.

Shivansh Verma, the son of Shivkumar Verma, the manager of the same PNB Shernagar branch, filed a complaint. He complained about the old manager's financial theft at the New Mandi Kotwali police station. 

 His complaint states that from July 17, 2021, to May 2, 2023, Amrita Singh, the wife of Lokendra Singh and a native of Rampur village in the Kanpur Nagar area, served as the Branch Manager at PNB Shernagar. She currently resides in Gokul City, Muzaffarnagar, with her family.

How the Fraud Happened

Amrita Singh requested for a house loan from her own branch when she was the branch manager in order to purchase a plot in Dream City, a housing colony being built in Muzaffarnagar. She stated that the purpose of the loan was to purchase land and construct a home on it. 

 

A Rs 40 lakh home loan was authorized by the bank and credited to her personal account. Amrita Singh did purchase the land, but despite the passage of time, no construction has begun on the property. Additionally, it was discovered that she failed to provide crucial paperwork needed for the property's mortgage, which is a prerequisite for obtaining a house loan.

She obtained the entire sum of Rs 40 lakh by abusing her powerful position within the bank and skipping the required procedures. Amrita Singh did not begin construction or adhere to the bank's loan requirements despite multiple reminders from the bank. 

 The bank suspended her after an internal investigation determined that fraud had taken place. The bank subsequently filed an official complaint with the police.

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Home Loan Fraud in Bank, Builder sold same Flat to multiple People

 In a noteworthy development, on July 4, 2025, Harsh Sharma was taken into custody by the Central Bureau of Investigation (CBI) in relation to a housing loan fraud case that began on August 2, 2017. Since the case was initially filed, Harsh Sharma had not participated in the investigation and had been evading capture for eight years. In a protracted investigation, his arrest represents a significant advancement.

The CBI claims that Harsh Sharma and the construction company Shree Balaji Hitech Construction engaged in a criminal conspiracy. His personal information, including his KYC details, was exploited to fabricate home loan applications. He was fictitiously represented by the builder as the buyer of an apartment that never actually changed hands.

The identical apartment was purportedly sold to several phony purchasers in order to defraud Punjab National Bank of loan payments. Through fabricated documentation and fictitious transactions, this fraudulent behavior enabled the builder to unlawfully receive substantial quantities of money from the bank.

On March 19, 2024, the CBI submitted a charge sheet outlining the accused's role before the Special CBI Court in Ghaziabad. The court had issued a non-bailable warrant against Harsh Sharma because he was evading capture and refusing to cooperate with the inquiry. On the morning of July 4, 2025, the CBI team made the last arrest after persistently trying to track him down.

Harsh Sharma was brought before the Special Judicial Magistrate (CBI) in Ghaziabad after his arrest. He is currently being held in judicial detention until July 15, 2025, under the court's ruling. The CBI has said that the matter is still being investigated and that additional information may be revealed as it develops.

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CBI arrests proclaimed offender in historical bank fraud case involving Rs 5.69 lakh at Bank of India(BOI)

Satish Kumar Anand, who was designated a Proclaimed Offender in a bank fraud case involving ₹5.69 lakh from Bank of India, has been taken into custody by the Central Bureau of Investigation (CBI). The case began on May 5, 1978, when the CBI filed a complaint against three individuals:

1. The Branch Manager of a Bank of India branch
2. Satish Kumar Anand
3. Ashok Kumar

CBI alleged that the branch manager and Satish Kumar Anand worked together in a criminal conspiracy to cheat the bank.

• The bank manager, while working at the branch in 1977, sanctioned a loan to a private company.
• The loan was given based on fake receipts and false bills, showing goods had been sent out, when in reality, no such shipment took place.
• As a result, the bank lost ₹5.69 lakh, and this amount wrongfully benefited Satish Kumar Anand.

After investigating, CBI filed a chargesheet in the Special CBI Court in Dehradun.

• In 1985, the court convicted Satish Kumar Anand and Ashok Kumar, sentencing both to 5 years of rigorous imprisonment and a fine of ₹15,000.
• The bank manager was acquitted (found not guilty).

How Did Satish Kumar Anand Become a Proclaimed Offender?

After being convicted, Satish Kumar Anand disappeared and did not serve his jail sentence. The CBI Court in Dehradun, on 30 November 2009, officially declared him a Proclaimed Offender, which means he was legally marked as an absconder.

After years of being on the run, CBI arrested Satish Kumar Anand on 25th June 2025. He will now be presented before the Special CBI Court in Dehradun, where further legal action will be taken.

More details will be released soon.

Source -hellobanker.in

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Case Filed Against 5 Bank Officers in Agra, Chief Manager Suspended

In a serious development, the Jagdishpura police station in Agra has registered a case against five Indian Bank officers after an investigation based on a complaint filed by a woman. The case includes charges of fraud, defamation, and violation of the Information Technology (IT) Act, along with provisions under the SC/ST Act.

What Is the Case About?

According to ACP Loha Mandi, Mayank Tiwari, the case was registered after instructions from the SC-ST Commission. The complaint was filed by Preeti Singh, a resident of Nilgiri Enclave, Albatia Road, Agra.

Preeti Singh’s husband, Vikrant Singh, previously served as the Chief Manager at Indian Bank’s Noida branch. He was suspended by the bank in connection with a corruption case. Following his suspension, Preeti Singh filed a complaint alleging that bank officials acted illegally to falsely strengthen the case against her husband.

Who Are the Accused?

The FIR names five Indian Bank officers who are posted in different locations:

• Vikay Arya
• Deshbandhu Gupta
• Archit Gupta
• Harsha Sahu
• Vishesh Kumar Srivastava

These officers are posted in Noida, Lucknow, and Chandigarh, as per the FIR.

What Are the Allegations?

Preeti Singh alleged that the bank officers illegally accessed private bank account information belonging to her and her minor daughters, without any official permission. She claims that these details were taken without proper communication or authorization from the banks where these accounts were held, including Canara Bank and the State Bank of India (SBI).

She also said that forged documents were prepared to make false claims, and that every effort was made to damage her social reputation. The accused bank officials allegedly attempted to show that her husband’s corruption charges were valid by misusing their power and accessing private information.

Police Action and Legal Process

ACP Mayank Tiwari confirmed that serious allegations were made against the Indian Bank officials. He stated that the woman had been filing repeated complaints, which eventually reached the SC-ST Commission. After a legal review, police registered the case under relevant sections of the SC/ST Act, fraud, defamation, and the Information Technology Act.

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CBI has filed a case against hotel directors in Rs. 75 crore fraud case of PSU bank

The Central Bureau of Investigation (CBI) has brought a case against two former directors of Maha Associated Hotels Pvt Ltd in a significant effort to combat bank fraud.  Both Yash Deep Sharma and Laxmi Narayan Sharma, who hail from Hyderabad's Gachibowli neighborhood, are charged with defrauding Punjab and Sindh Bank of Rs.75.44 crore.

 Avdhesh Narain Singh, the zonal manager of the bank, filed a complaint, which prompted the CBI's Bank Security and Fraud Branch (BSFB), located in Delhi, to file the FIR.  Charges under IPC Sections 120-B (criminal conspiracy) and 420 (cheating), together with pertinent provisions of the Prevention of Corruption Act, are included in the FIR.  The case also involves a few unidentified private citizens and state employees in addition to the two directors who have been named.

Actual Case

The bank's complaint claims that in 2013, Maha Associated Hotels Pvt Ltd borrowed Rs.75 crore from the Connaught Circus Branch of Punjab and Sindh Bank in New Delhi. In Neemrana, Rajasthan, the loan was intended to finance the building of a hotel, a plaza with food and entertainment, and a hospitality training academy.

However, the bank has claimed that the monies were misappropriated and not used for these initiatives. On December 31, 2016, the account was designated as a non-performing asset (NPA) due to inadequate financial management and loan non-repayment.

What Happened

Maha Associated Hotels Pvt Ltd is not listed as an accused party, despite the fact that the directors are named individually in the complaint.  Under the Insolvency and Bankruptcy Code (IBC), the Jaipur-based business underwent the insolvency process.  A resolution plan for Rs.11.5 crore plus charges for the Corporate Insolvency Resolution Process (CIRP) was authorized by the National Company Law Tribunal (NCLT) in Jaipur on August 13, 2024.  Regretfully, the bank had little to no security available to recoup the outstanding loan balance.

Recovery of Loan Amount

The bank had obtained a mortgage on Neemrana land and other fixed assets in order to secure the loan when it was initially granted.  However, the bank used the SARFAESI Act to take symbolic ownership of the property in 2017 after the borrowers were unable to repay.  The healing process is still ongoing in spite of this.  The bank requested more than 104 crore in a recovery claim submitted to the Debt Recovery Tribunal (DRT).  That lawsuit has not yet been resolved.

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Fraud found in PSB & Private Banks as per AIBEA data

 EFFICIENCY PARAMETER OF BANKS BASED ON NO. OF FRAUDS REPORTED

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PSU Bank Branch Manager sent to 3 years Jail by CBI

 

In connection with a bank fraud case, a special CBI court in Ghaziabad has convicted two people—a private individual and a former bank manager of Union Bank of India—to harsh jail. Manoj Srivastava, the former Branch Manager of Union Bank of India's SSI Branch in Noida, was given a three-year severe prison sentence and a ₹5 lakh fine by the Special Judge for CBI Anti-Corruption proceedings. Private citizen Raj Kumar Samanta, his co-accused, received a ₹10 lakh fine in addition to four years of hard labor. The court fined the two accused a total of ₹15 lakh.

The case was filed by the Central Bureau of Investigation (CBI) on December 14, 2010, in response to claims that Manoj Srivastava, the branch manager, had processed a loan for Raj Kumar Samanta fraudulently. The bank suffered an unjustified loss as a result. On September 29, 2012, the CBI filed a chargesheet against both accused following a thorough investigation. Following the trial, the court imposed the appropriate sentence after finding both defendants guilty of criminal misconduct and cheating.

This judgment underscores the CBI’s continued crackdown on banking fraud and misconduct by public servants in collusion with private individuals.

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Axis Bank Manager Arrested in Bank of India(BoI) Loan Takeover Case for Rs 2.20 Crore Fraud

Rahul Patel, the branch manager of Axis Bank's Vesu branch, has been charged with fraud by the Athwalines police for allegedly defrauding Bank of India of Rs 2.20 crore by failing to turn over mortgage paperwork during a loan transfer. 

Police say the branch manager of Bank of India's Ghoddod Road branch made the allegation. The issue concerns Siddhi Dasani, who owned Shri Anand Impex in Kadodara and had a Rs 2.20 crore cash credit account with Axis Bank. 

Siddhi approached the Chauta Pul branch of Bank of India to assume the current loan because of the exorbitant interest rates.

A portion of the Rs 7.45 crore fresh loan that the Bank of India approved once all formalities were finished was used to pay off the outstanding balances at Axis Bank.  

Rahul Patel allegedly neglected to shut the previous loan account and provide Bank of India with the original mortgage property paperwork, which are necessary for these loan takeovers, even after receiving the money.

Unexpectedly, Siddhi and her husband, Uttam Dasani, allegedly took money out of the Axis Bank account even after the settlement was reached and then stopped making payments to the Bank of India.  The Axis Bank manager's inaction contributed to this chain of events, which caused Bank of India to suffer a financial loss and call the police.

For willful misconduct and fraud, authorities have filed a First Information Report (FIR) against Rahul Patel. They claim that Patel purposefully concealed important documents, allowing the Dasanis to abuse the system.

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Assistant General Manager(AGM) arrested in Rs.27 Crore Loan Fraud

The Assistant General Manager (AGM) of the State Bank of India (SBI) has been arrested by the Crime Investigation Department (CID) for his role in a loan fraud case involving Rs 27 crore in 2013.

From 2009 to 2011, the 53-year-old officer, K Sanjay, was employed as a Relationship Manager at SBI's Balanagar SME (Small and Medium Enterprises) branch. He is charged with using unlawful means to assist a business called Adarsh Communications Pvt. Ltd. in obtaining a loan of Rs 27 crore while he was employed at the bank.

These illegal methods included:

• Accepting fake documents (forged papers).
• Falsely claiming that agricultural land was actually non-agricultural, so it could be used to get the loan.
• Ignoring bank rules and not properly checking or securing the property kept as guarantee (collateral) for the loan.

The main people behind Adarsh Communications are:

• M. Anjaneyulu (Managing Director)
• Manikonda Reeta (Director and his wife)

They were hiding from the police since 2013 but were finally caught by the CID in Bengaluru in May 2024.

Another bank employee, G. Ravindranath, who was working as a Customer Support Officer at the same branch, is also accused in the case. However, he has not yet been arrested.

According to CID officials, Sanjay and others broke bank rules, trusted fake documents, and failed to protect the bank’s money. Because of their actions, the bank lost a huge amount.

The charges filed against them include:

• Cheating
• Criminal breach of trust (breaking the trust given to them)
• Forgery (using fake documents)

K Sanjay was brought to court and is now in judicial custody (kept in jail by court orders until the investigation or trial continues). More details will be released soon.

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Bank Manager and Clerk Arrested in Rs.23 Lakh Fraud Case

 

A branch manager and a clerk from Indian Bank's Santhome branch in Chennai have been taken into custody by the Central Crime Branch's Bank Fraud Investigation Wing on suspicion of being involved in a significant fund theft case.

The police claim that Sathya Narayana, the regional manager of Indian Bank, lodged the complaint that led to the arrests. He accused P. Jayasingh, a clerk at the Santhome branch, and Sundar Mohan Maji, the branch manager, of grave financial malfeasance in his complaint to the City Police Commissioner.

Misuse of Customer Accounts

The complaint claims that by fraudulently taking money out of customer accounts, the two bank employees abused their positions. They allegedly obtained dormant accounts those that had not been used for a long period of time and falsified customer signatures to siphon off funds without the account holders’ knowledge.

Loans Taken Without Customers’ Knowledge

The officials also allegedly took out loans in the names of unsuspecting customers. These loans were then settled by pledging jewellery, possibly stolen or fraudulently acquired. In one instance, they are accused of swindling 146.5 grams of gold jewellery from a customer. The total loss caused by their fraudulent activities has been estimated at Rs.23 lakh, as per the bank’s internal findings.

Arrest and Legal Action

The Central Crime Branch investigated the case and arrested both Sundar Mohan Maji and P. Jayasingh. They were presented before the court and have been remanded to judicial custody as the investigation continues.

This case has raised serious concerns over internal monitoring and customer account security at banking institutions. Authorities have assured that strict action will be taken and all efforts are being made to recover the defrauded amount.

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Rs 10 crore fraud in Bank of India(BOI), Senior Bank Officer Sent to Jail

Three people were sentenced to five years in prison by a special Central Bureau of Investigation (CBI) court for defrauding Bank of India out of Rs.10.27 crore in a significant decision. In the case, which began in April 2012, a businessman, a senior bank official, and an intermediary forged paperwork in order to obtain credit from the bank without authorization.

The court also imposed severe financial penalties in addition to the jail sentence. The middleman received a fine of Rs.30 lakh, the banker Rs.15 lakh, and the businessman Rs.8 crore.

Case Registered in 2013 by CBI

The CBI’s Economic Offences Wing registered the case on February 2, 2013. Those named in the case included:

• Nikhil Patt, a businessman
• Damodar Kamath, then senior manager (credit) at Vijaya Bank
• Sooraj Tayade, an agent
• Four other accused, including two who are still absconding, one who passed away during the trial, and one who was acquitted due to lack of evidence.

How the Bank Fraud Happened

The complaint came from the Deputy Zonal Manager of Bank of India’s Mumbai North Zone. According to the investigation, the fraud was carried out using fake Letters of Credit (LCs) – financial instruments banks use to guarantee a buyer’s payment to a seller.

Kamath, the bank manager, issued four such fake LCs worth a total of Rs.10.27 crore. Here’s how the LCs were misused:

• Two LCs worth Rs.7.25 crore were issued in the name of Madhav Trading Corporation, a company owned by Nikhil Patt.
• One LC was issued to Siddhi Graphics, owned by Sameer Shah.
• The fourth LC was in the name of Parmar Trading Corporation, owned by Chandrakant Desai.

Shah and Desai are still on the run.

Misuse of Funds

Once the fake LCs were processed, a Bank of India officer named T. Gopala verified and cleared them. The money was then credited to the accounts of the three companies involved.

However, the money was not used for any business purpose. Instead, it was transferred across different accounts and withdrawn in large amounts by the accused.

The investigation revealed that out of the Rs.10.27 crore:

• Rs.1.02 crore was transferred from Madhav Trading Corporation to Suraj Kumar Trading, a company owned by Sooraj Tayade.
• Another Rs.15 lakh was directly transferred to bank manager Kamath, suggesting his active role in the fraud.

This case is a serious example of how banking frauds can affect public financial institutions. The court’s decision sends a clear message: those who misuse their position and cheat the banking system for personal profit will face strict legal consequences.

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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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