ED initiates probe against Mumbai-based firm for alleged fraud of Rs 60 cr

The ED has filed an application in the Chandigarh District Court requesting the CBI to hand over all case-related records, including the FIR, chargesheet, and other relevant documents. The CBI had concluded its probe in March this year and filed a chargesheet in the district court.

According to the complaint, on July 17, 2023, Nand Kishore Barnwal, chief manager, PNB, approached the CBI alleging that Ankur Drugs and Pharma Limited had, in 2009, sought a short-term loan of Rs 50 crore and a term loan of Rs 30 crore to expand its Baddi unit. The bank eventually sanctioned loans amounting to around Rs 60 crore. However, the company defaulted on repayments, and by 2012, the account was classified as a non-performing asset (NPA) with outstanding dues exceeding Rs 60 crore.

The bank alleged that the company had inflated stock values in its stock statements to secure higher credit limits and diverted the sanctioned short-term loan for long-term purposes, in violation of loan conditions. This amounted to a deliberate act of fraud and misuse of funds, the bank claimed.

Following the alleged default and misuse, the PNB filed a formal complaint with the CBI, which led to the registration of an FIR against the company and its director.

The CBI’s investigation resulted in a chargesheet earlier this year, paving the way for the ED to now begin a parallel probe under provisions of the Prevention of Money Laundering Act (PMLA).