Hyderabad: The Enforcement Directorate (ED) has provisionally tied 11 properties located in Hyderabad and Bangalore worth Rs. 6.18 crore in the loan fraud case by Balvinder Singh and his group of companies PCH.
ED initiated a money laundering investigation based on an FIR registered by the CBI, EOW, Chennai, under various sections of the IPC. It was alleged in the CBI indictment that PCH Agencies Pvt. Ltd., PCH Lifestyle Pvt. Ltd., Balvinder Singh and others caused unwarranted losses to Punjab and Sind Banks, George Town Branch, Chennai to the tune of Rs. 22.15 crores using credit facilities by submitting fabricated documents to show a good turnover and illegally embezzling the loan funds.
Subsequently, two more FIRs were registered by CBI, BS and FC, Bangalore and EOB Chennai against PCH companies for committing more loan fraud.
The investigation conducted by ED revealed that the PCH group had received loans from various public and private banks and had not repaid them. Amounts received as loans were embezzled by shell companies with the help of AC and entry operators in Hyderabad and Mumbai and recovered by PCH group in an attempt to show false rosy financial health of the companies to qualify for new loans.
Loan funds were diverted to more than 77 bogus shell companies without any sourcing of goods. The revolving funds were presented as unsecured loans and used to project a false injection of social capital to increase the stake in the PCH group with the aim of benefiting from more loans and also with the aim of an IPO. expected scholarship.
The investigation revealed that Balvinder Singh and his wife Baljit Kaur received more than Rs. 71.64 crore and Rs. 11.42 crore, respectively, from various shell entities. All of these funds are only diverted from loan proceeds, the ED said. Some of these proceeds of crime were used to purchase properties in the names of his companies as well as personal names which were then mortgaged to banks for further credit facilities.
Benami’s assets in the name of relatives of Balvinder Singh were created with the proceeds of crime. The loan fraud caused a loss of Rs. 747 crores to the banks.
Previously, Balvinder Singh was arrested by the ED under the PMLA on February 8, 2022. As a result, 11 of these assets were identified as proceeds of crime and seized.