An FIR has been registered against Ludhiana-based bicycle parts manufacturer Rolex Cycles Private Limited, its director Kanchan Prabhakar and unidentified persons in an alleged ₹12-crore fraud on the complaint of Canara Bank, police said on Wednesday.
The FIR was registered on November 6 after the bank alleged that the company secured credit facilities by submitting fabricated financial statements, disposed of stock and machinery hypothecated with the bank without its consent and diverted funds through an associate company.
According to the complaint, the alleged irregularities took place between June 22, 2013, and September 29, 2016. The bank’s Ludhiana corporate branch had sanctioned ₹23 crore credit to the company in September 2013. The limit was subsequently enhanced to ₹24 crore in October 2014 and renewed in January 2016. Bank of Maharashtra later joined the lending consortium with a separate working capital limit of ₹5 crore.
The bank’s internal investigation reportedly found discrepancies between financial statements submitted to it and those filed with the registrar of companies for 2010-11 and 2011-12. It also alleged that the company had shifted part of its production to another location without informing the bank and disposed of hypothecated stock and machinery.
A communication from a company employee in June 2016 had also alerted the bank about the shifting of machinery, the complaint states. The company’s account subsequently turned non-performing on September 29, 2016.
{{/usCountry}}A communication from a company employee in June 2016 had also alerted the bank about the shifting of machinery, the complaint states. The company’s account subsequently turned non-performing on September 29, 2016.
{{/usCountry}}The matter was admitted by the National Company Law Tribunal (NCLT) in July 2017, and liquidation proceedings began in February 2018. According to the bank, several secured assets were subsequently sold through the recovery process.
Canara Bank classified the account as fraud and reported it to the Reserve Bank of India on January 7, 2026. It lodged a criminal complaint on March 5, 2026, seeking action against the company, its director and other unidentified persons.
Acting on a communication from the Punjab Bureau of Investigation, the police registered the FIR under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code. Inspector Renu Sahu has been assigned the investigation.