Pinjore man held for bank fraud

After obtaining loan from the bank, the accused did not return it and the account was declared NPA in 2015 for the amount of ₹82 lakh

A resident of Pinjore was arrested for defrauding a bank by taking a loan on the basis of forged documents, the police said on Monday.

Cash credit and book debts facility of ₹65 lakh, which was enhanced to ₹75 lakh, was sanctioned by Punjab National Bank to a trading company registered in the name of the Pinjore resident. (HT FILE PHOTO)

The complaint was registered by one Sunil Malhotra, the manager of Punjab National Bank (PNB) in Burail village, who alleged that PNB sanctioned cash credit and book debts facility of ₹65 lakh, which was enhanced to ₹75 lakh, to Best Trading Company Proprietorship of accused Harvinder Singh, 53.

The company was engaged in the business of trading in papers on June 14, 2013, at MS Enclave Dhakoli in Zirakpur. All the necessary documents were executed on June 14, 2013, at PNB branch in Burail, Sector 45.

The repayment of loan was secured at the personal guarantee of Harvinder Singh while the loan was collateral secured by registered mortgage of immovable property, owned by Harvinder Singh, located in Ashok Nagar near Friends Colony, Ludhiana, in favour of the bank.

The complainant alleged that after obtaining the loan from the bank, accused Harvinder Singh did not return it and the account was declared NPA on July 28, 2015, for the amount of ₹82 lakh. The accused was booked on July 18, 2017, under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code.