Is a Metal Company and Its Directors Defrauding PNB of Rs 247 Crore?
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Synopsis
The recent action taken by the CBI against a Delhi-based metal company for allegedly defrauding Punjab National Bank of ₹247 crore sheds light on the ongoing battle against white-collar crime in India. The case reveals a complex web of deceit and financial misconduct that calls for justice.
Key Takeaways
- CBI's action against financial fraud demonstrates commitment to justice.
- Allegations involve significant sums of money, highlighting vulnerabilities in banking.
- Importance of forensic audits in detecting financial misconduct.
New Delhi, June 17 (NationPress) In a significant move against white-collar crimes, the CBI has initiated legal action against a metal manufacturing firm based in Delhi, along with its directors, for allegedly defrauding Punjab National Bank of Rs 247 crore.
The action follows a complaint lodged by Kamal Agarwal, Chief Manager at the Zonal Sastra Centre of Punjab National Bank, situated in Bhikaji Cama Place.
The bank accused the borrower company and five other individuals of committing serious offenses, including cheating, criminal breach of trust, misappropriation, and illegal diversion of bank funds.
The FIR, filed on June 4, revealed that the defendants engaged in the fabrication of documents to defraud PNB, leading to a wrongful loss of Rs 247.84 crore and a corresponding gain for themselves.
The Bank Securities and Fraud Branch (BS&FB) of CBI, Delhi, is pursuing the case against Apple Industries Limited, which has its registered office at Netaji Subhash Palace, Pitampura. The implicated individuals include Pawan Kumar Garg, Narendra Kumar Garg, Yogender Kumar Garg, Akash Gupta, Ashish Garg, as well as unnamed public officials and private individuals.
According to PNB’s report submitted to the CBI, the company is involved in the manufacturing and trading of sponge iron and billets, with Pawan Kumar Garg from Banjara Hills, Hyderabad as its promoter.
The bank reported that in 2008, the company was granted a credit facility, comprising a term loan of Rs 58 crore and cash credit of Rs 15 crore.
The Bank’s complaint states that the sanction was duly accepted by the company’s board, which passed a resolution to execute loan documents and create an Equitable Mortgage against the company's immovable properties located in Village Dhiral, Raidurg Tq, Anantpur District, Andhra Pradesh.
Citing information from the Income Tax Department and the Department of Financial Services (DFS), along with its own forensic audit, the bank expressed concerns about potential fraud.
A letter from the Income Tax Department dated December 13, 2018, indicated that the group entities seemed to lack adequate assets, raising suspicions of loan funds being misappropriated to entities based in Hong Kong.
The accused allegedly acted in collusion, causing significant wrongful gain for themselves and a substantial loss to the bank amounting to Rs 247.84 crore, in addition to accrued interest due from the loan's classification as a non-performing asset.
The complaint concludes with a request to prosecute the perpetrators under the relevant legal provisions for their involvement in fraud, criminal misappropriation, cheating, and criminal breach of trust as defined in the Bharatiya Nyaya Sanhita.
Point of View
It is imperative to highlight the importance of accountability in financial operations. This case not only reflects the challenges faced by banks in curbing fraud but also underscores the necessity for stringent measures to protect public trust in financial institutions. Upholding the law and ensuring justice for the victims is paramount.
NationPress
17/06/2025
Frequently Asked Questions
What are the charges against Apple Industries?
Apple Industries and its directors face serious charges including cheating, criminal breach of trust, misappropriation, and illegal diversion of bank funds.
How much money is involved in the fraud?
The alleged fraud involves a total of ₹247.84 crore.
What actions have the CBI taken?
The CBI has booked Apple Industries and its directors based on a complaint from Punjab National Bank.
What was the nature of the loan granted?
The loan granted to Apple Industries included a term loan of ₹58 crore and cash credit of ₹15 crore.
Where is Apple Industries located?
Apple Industries is registered at Netaji Subhash Palace, Pitampura, in Delhi.
