ED Arrests PCH Group Director For Rs 370 Crore Bank Loan Fraud

NEW DELHI: The Enforcement Directorate (ED)  on Thursday arrested the director of a Hyderabad-based PCH Corporation Ltd and other PCH group companies, in connection with an alleged bank loan fraud case of Rs 370 crore, the agency said in press release. PCH group companies availed loans from various public and private banks and "failed" to repay them, the ED said.

The director Balvinder Singh was arrested on February 8 and produced before a special Prevention of Money Laundering Act (PMLA) court in Hyderabad on Wednesday. The court remanded him to judicial custody till February 23, the ED said in a statement.

As per a  CBI chargesheet, it is alleged that PCH Agencies Pvt Ltd, PCH Lifestyle Pvt Ltd, Balvinder Singh and others caused wrongful loss to Punjab and Sind Bank, George Town branch, Chennai, by fraudulently availing credit facilities by submitting fabricated documents to show higher turnover and then diverting the loan funds," the ED said.The amounts received as loan were diverted through shell companies with the help of CAs (chartered accountants) and entry operators (hawala dealers) in Hyderabad and Mumbai and it was received back in the PCH group companies for the purpose of showing a fake picture about the financial health of PCH Group, for the purpose of availing more loans and also for the purpose of an

Part of these diverted amounts was also received in the personal account of Balvinder Singh and his family members and relatives, the agency alleged in the statement. They also utilized the money  to purchase properties in the names of Singh's companies as well as in personal names which were later mortgaged to the banks for availing more credit facilities. These unsecured loans have not been repaid till date,  the ED said.

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