The CBI today conducted searches at the premises of PSL Directors and others at 12 locations in multiple cities after registering four separate cases of alleged bank fraud totalling Rs 217 crore, officials said.
The CBI seized cash — US Dollars 90,413 and Rs 1.99 crore — during the searches, they said.
The cases were registered on complaints from Canara Bank, Punjab National Bank, IDBI Bank Ltd and the EXIM Bank on allegations of fraud, totalling Rs 217.37 crore (approx), they said.
The searches were spread at 12 locations in Mumbai and one each at Daman, Kutch, Noida and Delhi, they said.
The first case pertained to Canara Bank to the tune of Rs. 30.49 crore (approx).
“It was further alleged that the said private company which was in the business of pipe manufacturing and pipe coating, availed credit facilities from e-Syndicate Bank and thereafter diverted the funds into its subsidiary companies,” the CBI spokesperson said.
The second case pertains to alleged fraud of Rs 51.90 crore in the Oriental Bank of Commerce (now merged with Punjab National Bank) to the tune of Rs. 51.90 crore (approx), the official said.
“It was further alleged that the said private company availed credit facilities in order to execute work orders received from GAIL and NTPC.
“It was also alleged that the accused deliberately siphoned off the money received from the projects of GAIL and NTPC without informing Oriental Bank of Commerce,” he said.
The CBI said the third case pertained to alleged defrauding of IDBI Bank Ltd. To the tune of Rs 29.06 crore (approx).
“It was further alleged that the loan received from the bank for various projects of the company were utilized for purposes other than for which it was sanctioned, like repayment of dues of other banks etc,” the CBI said.
The company and its executives were accused of allegedly committing fraud of Rs 105.92 crore in Export Import Bank of India (EXIM Bank).
“It was further alleged that the accused availed credit facilities in order to execute work orders but deliberately diverted the money received for other purposes,” it said.