PSL ltd involved in deceiving Bank of Baroda in a loan fraud case

Adverse Media, CBI

PSL Ltd deceived Bank of Baroda in a loan fraud case. Central Bureau of Investigation (CBI) has registered a case of cheating against a Mumbai-based private company for allegedly duping Bank of Baroda (BoB) to the tune of Rs 274 crore. S K Sharma the Deputy General Manager of Bank of Baroda filed a written complaint on PSL Ltd.   its directors and other accused persons, during the period of 2011 to 2016 were party to a criminal conspiracy to cheat BoB. “In pursuance to the said criminal conspiracy, the directors of M/s PSL Ltd, induced BoB to sanction Demand Loan of Rs 300 crore and disburse the loan proceeds for execution of specific orders from Gas Authority of India Ltd (GAIL) ,” said a CBI official.

As per the terms of sanction the bank alleged that the company routed receivables from GAIL order. The ESCROW account maintained by Bank of Baroda. For clearing the bank dues its used. However the funds received by the company from GAIL not routed through ESCROW account. It is maintained by Bank of Baroda. But rather it syphoned off the transaction amount of the company in a private bank in Mumbai.

The company admitted that they received the money from GAIL in their private bank account. It spend for the purposes other than sanctions. Therefore, Bank of Baroda suffered a huge loss of Rs. 274 crore. In June 2016 Bank of Baroda declared PSL Ltd account fraudulent. The Chartered Accountants and the officials of the company involved in the conspiracy.

Final Word

So, Central Bureau of Investigation (CBI) has registered a case against PSL Ltd. It had defrauded in Loan scam. The scam took place against the Bank of Baroda. Theofficials of the bank filed a detailed compliant against the company and the main company officials. It regarded as an important case. CBI carried the investigation in detail.