Bengaluru, August 1: The Central Bureau of Investigation (CBI) conducted simultaneous raids on ten locations, including Hyderabad and Vizianagaram, related to a loan fraud case involving NCS Sugars and Punjab National Bank. The agency seized numerous documents and digital devices during the operation.
According to an official statement, “The CBI executed a coordinated search operation at ten sites in Hyderabad, Vizianagaram, and Kakinada. These included factories, registered offices, and residential properties linked to the directors of NCS Sugars Limited.”
The CBI reported that essential records related to the investigation, along with several incriminating documents and digital evidence, were recovered and confiscated during the searches.
The agency stated that the seized items are currently under examination to uncover the full extent of the criminal conspiracy, track the manipulation and movement of funds, and determine the specific roles of all individuals involved.
Based on a complaint from Punjab National Bank (PNB) in Chennai, the CBI registered a case against NCS Sugars Limited, its directors, and unidentified government officials for bank fraud in its Banking Securities and Fraud Branch in Bengaluru.
The CBI noted that the complaint included allegations of criminal conspiracy, fraud, criminal breach of trust, misuse of property, and forgery, which resulted in a wrongful loss of ₹105.44 crore to PNB.
It is alleged that the accused submitted fake documents to the lending bank, misrepresenting their authenticity.
The CBI stated that based on these documents, the accused obtained credit facilities and subsequently misappropriated the loan funds instead of using them for the intended business purposes. The agency indicated that the defendants failed to repay the bank, leading to irregularities and defaults in the loan accounts of the accused company, causing wrongful loss to the lending bank.
Previously, in 2017, the CBI had registered a case against at least two officials of NCS Sugars in connection with a separate alleged fraud of ₹82.11 crore involving the ‘Project and Equipment Corporation.’
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