Bengaluru: The Central Bureau of Investigation (CBI) has carried out coordinated search operations at 10 locations in connection with an alleged ₹105.44 crore bank fraud involving NCS Sugars Ltd, its directors and unknown public servants.
The case was registered following a complaint filed by Punjab National Bank (PNB), Chennai, alleging criminal conspiracy, cheating, criminal breach of trust, misappropriation of property and forgery.
Loan allegedly obtained using forged documents
According to the CBI, the accused allegedly submitted forged documents to the lending bank and presented them as genuine to secure credit facilities.
The investigating agency alleged that after obtaining the loans, the company diverted and misappropriated the funds instead of utilising them for the intended business purposes. The accused allegedly failed to repay the dues, causing the loan accounts to become irregular and eventually default.
The alleged fraud resulted in a wrongful loss of ₹105.44 crore to Punjab National Bank.
Searches conducted across Andhra Pradesh
As part of the investigation, the CBI conducted searches at 10 premises located in Hyderabad, Vizianagaram and Kakinada. The raids covered the factory premises, the registered office of NCS Sugars Ltd, and residential properties linked to the company’s directors.
During the operation, officials recovered and seized several incriminating documents and digital evidence believed to be relevant to the investigation.
Investigation continues
The CBI said the seized documents and electronic records are being examined to determine the full extent of the alleged criminal conspiracy and trace the flow of funds.
Further investigation is underway, and the agency is expected to examine the role of all individuals connected with the alleged fraud, including any public servants involved in the case.