HYDERABAD: The Enforcement Directorate has arrested a city-based businessman Balvinder Singh, who is the promoter and Director of M/s PCH Corporation Ltd and other PCH Group companies in a case relating to defrauding banks to the tune of Rs 370 crore. He was produced before the special court for ED cases in Hyderabad on Wednesday.
The ED initiated a probe based on a case registered by CBI Chennai branch in 2017. Balvinder Singh and the other accused had cheated Punjab and Sind Bank, George Town branch, Chennai, by fraudulently availing credit facilities. They submitted fabricated documents to show a higher turnover and then diverting the loan funds. Subsequently, two more FIRs were registered by the CBI Bengaluru and Chennai branches against the PCH Group companies.
The PCH Group companies availed loans from various public sector and private banks and failed to repay the said loans. The amounts received as loans were diverted through shell companies with the help of CAs and entry-operators in Hyderabad and Mumbai. They portrayed a false rosy picture about the financial health of PCH Group, for the purpose of availing more loans and also for an intended IPO.
Balvinder Singh got Rs 53.97 crore
A portion of these diverted amounts was also remitted to the personal account of Balvinder Singh and his family members and relatives. Investigations also revealed that Balvinder Singh had received amounts totalling Rs 53.97 crore from various shell entities which were used only for the purpose of rotation of funds.
The source of these funds is nothing but the syphoned off loans and they were utilised to purchase properties in the names of his companies. These properties were later mortgaged to the banks for availing more credit facilities. They have also not paid unsecured loans till date, the ED said.