CBI begins probe into bank fraud by retail firm

A case has been filed against PCH Retail Ltd, a leading retail and distribution house in Hyderabad, that operates multiple retail formats in both the value and lifestyle segment and its senior executives along with unknown bank officials in connection with the fraud. 

The CBI had slapped the case under criminal conspiracy, cheating, forgery, falsification of accounts along with criminal misconduct by a public servant and abuse of official position. The case has been registered against Balvinder Singh, managing director, PCH Retails Ltd, his wife Baljith Kaur, a director in the firm, Bhavesh R Vithali, a charted accountant and Taran Jyot Singh, director of Versant Home Appliances along with unknown bank officials. 

The CBI FIR says that the reliable information reveals that Balvinder Singh and his wife availed of various credit facilities from State Bank of India, Secunderabad, since the year 2007 by submitting false documents, to the tune of Rs 133.95 crore and fraudulently diverted the credit amount to various fictitious companies floated by them. It is further revealed that out of the loan amount, Rs.2.76 crore was also fraudulently transferred to Versant Home Appliances using which an immovable property was purchased in the name of Balvinder Singh’s daughter. 

The CBI says that the accused persons caused a wrongful loss of Rs 133.95 crore to the SBI and made corresponding gain to themselves.