The Central Bureau of Investigation (CBI) has registered a case against Chandigarh-based firm, Hillcrest Foods Pvt Ltd, its directors, and unidentified public servants for allegedly misappropriating ₹11 crore in loans from Punjab National Bank (PNB).
According to the complaint filed by PNB, it had sanctioned loans to the tune of ₹11 crore to Hillcrest Foods Pvt Ltd between 2014 and 2016. It alleged that the company, instead of utilising the loans meant for business purposes, diverted the funds to personal accounts and related parties without proper documentation or permission from the bank.
The properties that were mortgaged to PNB as security for the loan were also allegedly sold by the company, without the bank’s knowledge or approval, it was further alleged. The bank stated that by 2017, the company started defaulting on loan repayment.
The company, in its responses to the bank’s inquiries, claimed that crucial bank records and financial documents, including loan-related papers, were destroyed in a fire incident. The company provided this explanation to justify the lack of documentation supporting its financial dealings and loan usage.
After receiving a complaint from the PNB, the CBI launched a preliminary investigation that spanned over two years. Finding a larger conspiracy, the CBI officially registered a case on August 27 under Section 120B (criminal conspiracy), Section 420 (cheating), Section 468 (forgery for the purpose of cheating), and Section 471 (using a forged document as genuine) of the Indian Penal Code.
{{/usCountry}}After receiving a complaint from the PNB, the CBI launched a preliminary investigation that spanned over two years. Finding a larger conspiracy, the CBI officially registered a case on August 27 under Section 120B (criminal conspiracy), Section 420 (cheating), Section 468 (forgery for the purpose of cheating), and Section 471 (using a forged document as genuine) of the Indian Penal Code.
{{/usCountry}}The probing agency is also looking at the possible involvement of public servants, particularly in the processing and oversight of the loan.