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Karnataka

CBI conducts search operations at sugar factory in bank fraud case

The searches were conducted at 10 locations in Hyderabad, Vizianagaram and Kakinada.

Express News Service

BENGALURU: The Central Bureau of Investigation (CBI) on Friday conducted coordinated search operations in the bank fraud case registered at CBI, BSFB, Bengaluru, against NCS Sugars Ltd, its directors and unknown public servants on the complaint of Punjab National Bank (PNB), Chennai, alleging offences of criminal conspiracy, cheating, criminal breach of trust, misappropriation of property and forgery, causing a wrongful loss of Rs 105.44 crore to the PNB Bank.

In an official release, the CBI stated that the accused had allegedly submitted forged documents to the lending bank by representing them as genuine.

“On the basis of these documents, they availed the credit facilities and subsequently diverted and misappropriated the loan funds instead of utilising them for the intended business purposes,” the CBI added.

The central agency further claimed that the accused “failed to repay the dues to the bank, resulting in the loan accounts of the accused company becoming irregular/defaulted and caused wrongful loss to the lending bank.”

The searches were conducted at 10 locations in Hyderabad, Vizianagaram and Kakinada. The premises covered included factory, registered office, residential properties linked to the directors of NCS Sugars Ltd.

During the searches, incriminating documents and digital evidence, including records relevant to the investigation, were recovered and seized, the agency said. The seized material is being scrutinised to ascertain the full scope of the criminal conspiracy, trace the diversion and movement of funds, and determine the specific roles of all persons involved, added the CBI.

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