CBI conducts searches in Rs 105.44 crore PNB fraud case involving NCS Sugars Ltd
On Friday, the Central Bureau of Investigation (CBI) searched 10 locations in Hyderabad, Vizianagaram, and Kakinada as part of a major bank fraud case involving NCS Sugars Ltd. The case, handled by the CBI’s Bank Securities and Fraud Branch in Bengaluru, involves an alleged loss of Rs 105.44 crore to Punjab National Bank in Chennai.
According to the CBI spokesperson, the agency registered the case against the company, its directors, and some unknown public servants after a complaint from PNB. The bank accused them of criminal conspiracy, cheating, breach of trust, misappropriation, and forgery.
The accused used forged documents to get credit, then diverted and misused the loans instead of using them for business. The accounts became irregular and eventually defaulted, leading to major losses for the public sector bank.
The searches took place at the company’s factory, its registered office, and the directors’ homes. CBI teams collected documents and digital evidence for their investigation. Officials said they are now reviewing the materials to determine how far the alleged conspiracy extends, trace the money, and identify everyone involved, including any public servants. NCS Sugars Ltd, which makes sugar in Andhra Pradesh and Telangana, has faced financial problems in recent years and has been going through insolvency proceedings since 2022.
The CBI is now investigating PNB credit facilities and claims that forged documents were used to obtain and move funds.
Bank fraud like this is still a problem for India’s public sector banks. Agencies like the CBI often look into cases where borrowers get loans by giving false information, inflating assets, or moving money to related companies. In this case, the complaint mentioned forged documents and the failure to use the funds for proper business purposes.
CBI officials said the investigation is still in its early stages. They expect the digital evidence to help trace transactions and find any transfers meant to hide how borrowed funds were used. Reviewing the seized records will show if the alleged forgery and fund diversion happened once or are part of a bigger pattern involving more people.
The agency said more action could follow after it finishes analysing the material. No arrests have been made so far. The agency has economic offence cases and says protecting public funds is a top priority. As they continue reviewing documents and digital devices, more information about the alleged conspiracy and the amount of diverted funds should emerge.
The investigation is still underway.
