Hyderabad: The Enforcement Directorate has attached 11 properties located in Hyderabad and Bengaluru in a loan fraud case allegedly involving Balvinder Singh and his PCH Group of Companies. The properties had a value of
Rs 6.18 crore, the ED said.
The agency in a statement said it had initiated an investigation into alleged money laundering based on an FIR registered by the CBI’s Economic Offences Wing (EOW), Chennai. The CBI alleged in its chargesheet that PCH Agencies Pvt Ltd, PCH Lifestyle Pvt Ltd, Balvinder Singh and others had caused wrongful loss to Punjab and Sind Bank, George Town branch, Chennai,
Rs 22.15 crore by presenting fabricated documents and availing credit facilities and illegally diverting the funds. Subsequently, two more FIRs were registered.
During the investigation, ED said, the PCH Group had availed loans from various public sector and private banks and failed to repay them. The money was diverted through 77 shell companies with the help of CAs and data entry operators in Hyderabad and Mumbai and received back in the PCH group companies to used to show good financial health. The group allegedly used these financial reports to avail more loans.
"Investigation conducted so far has revealed that Balvinder Singh and his wife Baljit Kaur received amounts totalling Rs 71.64 crore and Rs 11.42 crore respectively,” the ED stated. The alleged fraud had caused a loss of
Rs 747 crore to the banks, the ED said.