Properties in Hyderabad, Bangalore attached by ED in PCH Group bank fraud case

The Enforcement Directorate has attached properties in Hyderabad and Bangalore in a PCH Group bank loan fraud case.

The Enforcement Directorate has attached properties worth Rs 6.18 crore in Hyderabad and Bangalore in a loan fraud case involving businessman Balvinder Singh and his PCH group of companies among others, officials said.

The ED had initiated a money laundering investigation on the basis of FIR registered by the Central Bureau of Investigation on the allegations that PCH Agencies Pvt Ltd, PCH Lifestyle Pvt Ltd, Balvinder Singh, and others defrauded the Punjab and Sind Bank’s George Town branch in Chennai to the tune of Rs 22.15 crore by availing credit facilities from the bank by submitting fabricated documents to show good turnover and illegally diverting the loan funds. The CBI later registered two more FIRs for defrauding banks.

The ED has alleged that PCH group companies had availed loans from various public sector and private banks and failed to repay the loans. The amounts received as loan were allegedly diverted through shell companies with the help of chartered accountants along with entry-operators in Hyderabad and Mumbai.

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ED has also alleged kickbacks were received back in the PCH group companies for the purpose of showing a false rosy financial health of the companies and for availing further loans in a cyclical manner.

“Loan funds were diverted to more than 77 bogus shell companies without any supply of goods. The rotated funds were shown as unsecured loans and used to project false share capital infusion to increase the share holding in the PCH Group for the purpose of availing more loans and also for the purpose of an intended IPO (initial public offering),” said the ED in a statement.

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