CBI arrests former Director of Private Company in a Bank Fraud Case

The Central Bureau of Investigation(CBI) arrested an evading suspect, a former Director of a private enterprise suspected of bank fraud. Following fresh information on the absconding accused, the CBI launched a search for him, which included checking his address/location, tracking his travels, and eventually apprehending him. He will be brought before the Special Judicial Magistrate’s Court in Ghaziabad tomorrow.

Previously, on March 23, 2015, the CBI opened an investigation based on a complaint from Punjab National Bank against a private firm, its directors, and unnamed Punjab National Bank personnel.

It was alleged that the said private firm, through its Directors, obtained different credit facilities from the PNB Branch in Noida, and that the money released under the credit facilities was syphoned off by the accused people. Furthermore, the hypothecated stocks were sold without depositing the proceeds in a bank. As a result, the defendants allegedly defrauded the bank and caused a loss of Rs. 22 crore as of April 30, 2014.

After the inquiry was completed, a chargesheet was submitted in the Court of Special Judicial Magistrate, CBI Cases, Ghaziabad. M/s Aar Vee Controls Pvt. Ltd. and its Director Smt. Kanta Sharma were convicted by the Court in a judgement dated December 21, 2017. The second accused Director had fled and been proclaimed PO. As a result, his case was divided.