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The Central Bureau of Investigation (CBI) has filed a case against the PSL Group and its directors for defrauding Canara Bank to the tune of Rs 428.50 crores.
PSL Limited is India's largest producer of HSAW pipes. It has 12 pipe mills throughout India with a combined production capacity of over 1 million tonnes. It also produces pipe coatings, anodes, induction bends & rebar coatings. The company also provides installment, engineering, training, and other services to its clients, some of which are from the US and UAE. It filed for insolvency in July 2017.
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The CBI conducted searches across 7 of the company's locations in Mumbai, Gujarat, and Kutch which yielded several incriminating documents. Acting on a complaint by Canara Bank, the CBI took over the case after an FIR was registered.
The company, along with its directors Ashok Yogender Punj, Rajender Kumar Bahri, Chitranjan Kumar, Jagdishchandra Goel, and Alok Yogender Punj have been named as accused in the case. According to the CBI, the accused planned to cheat Canara Bank during 2016-19 when it sought sanctions on several credit facilities, misrepresented accounts, mis-utilized funds, and diverted funds from its receivables.
"It was further alleged that the loan amount received from the bank for various projects was utilized for purposes other than for which it was availed. An alleged loss of Rs 428.50 crore (approx) was caused to Canara Bank," a CBI spokesperson said.
Shares of PSL Limited were suspended from trading with effect from 13th October 2020 due to the initiation of liquidation proceedings by the Ahmedabad bench of NCLT. It closed at Rs 0.45 per share on its final trading day.
Article by Aman Agarwal.
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