Pharma Firm, Director Under ED Lens Over Alleged Rs 60 Crore PNB Fraud

New Delhi: As a part of an alleged multi-crore bank fraud, the Directorate of Enforcement (ED), Chandigarh, has begun investigating Ankur Drugs and Pharma Limited, a pharmaceutical company based in Mumbai, and one of its directors, Giriraj Vijayvargiya, for allegedly defrauding Punjab National Bank (PNB) of more than Rs 60 crore.

The action follows after the Chandigarh Central Bureau of Investigation (CBI) filed a formal complaint (FIR) against the firm for allegedly defrauding Punjab National Bank (PNB) of Rs 60 crore two years ago, according to The Indian Express report.

The allegations stem from a 2009 loan arrangement in which the company reportedly sought a Rs 50 crore short-term loan and a Rs 30 crore term loan to expand its manufacturing unit in Baddi, Himachal Pradesh. PNB eventually sanctioned loans totaling around Rs 60 crore. However, by 2012, the account had turned into a non-performing asset (NPA) with dues exceeding the sanctioned amount.

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According to the complaint filed by Nand Kishore Barnwal, Chief Manager of PNB, the company had allegedly inflated its stock values in statements to obtain higher credit limits and diverted the short-term loan for long-term uses, actions that were in violation of loan terms. These moves were described as deliberate acts of fraud and misuse of funds.

In accordance with the aforementioned, the PNB formally complained to the CBI regarding the purported default and misuse, and a formal complaint was filed against the firm and its director.

After the CBI's inquiry produced a chargesheet earlier this year, the ED is now able to launch a parallel investigation in accordance with the Prevention of Money Laundering Act's (PMLA's) requirements, reports The Indian Express.