PNB Loan Fraud: CBI Court Grants Bail To 11 Accused

A Central Bureau of Investigation (CBI) court had granted bail to 11 accused in a whopping Rs 100-crore loan fraud case involving Punjab National Bank (PNB). The court noted that the investigation is complete with all the material evidence already collected. The court also ruled that the accused aren’t required to be kept under custody any longer since the probe has reached its conclusive stage.

The loan fraud case involved PNB and Siddhi Vinayak Logistics to whom the bank had sanctioned almost a decade ago, between 2013 and 2017. The loans were sanctioned to the company for purchasing 335 commercial vehicles. However, CBI found in its investigation that the promoters of the said firm secured loans by misrepresenting information. They didn't even fully secure it with hypothecated assets and used the funds for other purposes, according to a report in the Hindustan Times.

The CBI alleged that the loans were granted for 335 vehicles, but the firm secured only 240 vehicles. It also found that several vehicles were financed elsewhere and were not traceable. The misrepresentation caused the bank a loss of Rs 87.50 crore. Then, in 2022, the bank lodged an FIR against the firm and its promoters.

The bank alleged that it was a case of conspiracy, where the borrower used the line of credit facilities with false documents and false representations, causing a significant loss to the bank.

The special court noted the extensive scale of the fraud, causing crores in losses to the bank, but observed that custodial interrogation was not required at this advanced stage of the investigation. It further emphasised that all material evidence has already been seized, and there was no need to unnecessarily detain the accused.

The court granted bail to the promoters and directors of the firm. The accused who have been granted bail include Roopchand Baid, Deepak Kumar Baid, Rajkumar Roopchand Baid, and Laxmidevi Baid. In addition to these, the other people involved in the matter, Srikant Swain of Addplus Distributors and Anand Vijaikumar Singh of Transport Solutions India, also received bail.

The court granted bail to the bank employees as well, both retired and serving, for their alleged involvement in the loan fraud. These include Prakash Chandra Patra (chief manager during the loan sanction period), Vinod Chakradhar Joshi (retired deputy general manager), Swati Kunnure (manager - credit), Pradeep Kumar Varun (assistant general manager and branch head), and Dilipkumar Kantilal Gheewala (valuer).