The CBI has registered a case against a Navi Mumbai-based firm, its two directors and guarantors for allegedly causing a Rs 8.28-crore loss to PNB. The accused allegedly obtained an Rs 8-crore credit facility using inflated property valuation and diverted funds for unauthorised purposes.

The CBI has launched a probe into alleged fraudulent diversion of an ₹8-crore credit facility from PNB | AI Generated Representational Image

Mumbai, August 21, 2026: The Economic Offences Branch of the Central Bureau of Investigation (CBI), Mumbai, has registered a case against a firm having its corporate office at Navi Mumbai and its two directors and guarantors for allegedly causing a loss of Rs 8.28 crore to Punjab National Bank (PNB).

The borrower company and its directors, with fraudulent and dishonest intentions, diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned, officials said.

According to the CBI, a complaint was received from Rinu E. F., Chief Manager, Punjab National Bank, Asset Recovery Management Branch, Thane, alleging that the borrower company, involved in the trading business of merchandise, including all types of building materials, and its directors and guarantors, in criminal conspiracy with unknown public servants and private persons, cheated PNB to the tune of Rs 8.28 crore by fraudulently availing credit facilities.

Loan Obtained Through Alleged Misrepresentation

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It is alleged that the accused entered into a criminal conspiracy during the period 2012 to 2013 and dishonestly and fraudulently induced the bank by misrepresentation of facts at the time of sanction. Furthermore, the borrower availed cash credit limits of Rs 8 crore on the basis of inflated valuation of mortgaged property.

Over the period of time, the bank observed that the borrowers failed to adhere to the terms and conditions of the sanction letter, defaulted on paying interest and did not submit stock reports and book debt statements since July 2013.

In pursuance of the said criminal conspiracy, the borrower company and its directors dishonestly induced the bank by misrepresentation of facts and inflated the value of the mortgaged property and thereby availed a cash credit limit of Rs 8 crore.

The borrower company and its directors, with fraudulent and dishonest intentions, diverted and utilised the disbursed funds for purposes other than those for which the funds were sanctioned.

Thus, the accused directors cheated the bank and misappropriated the bank funds, thereby causing wrongful loss to the tune of Rs 8.28 crore to PNB and corresponding wrongful gain to themselves.

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Account Declared NPA

The directors of the borrowing company failed to service the instalments and interest on the loans and, accordingly, the account of the company was classified as an NPA in September 2013 by the bank. The account was reported as fraud by the bank to the RBI in July 2015.

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