Hyderabad: The Directorate of Enforcement, Hyderabad, on Thursday captured the Top Electronic Company PCH Corporation limited promoters and director Balvinder Singh in cases related to defauding banks with RS 370 Crore songs.
Singh was arrested on Tuesday and was produced in front of the PMLA special court on Wednesday.
He was returned in court custody until February 23.
Singh, who is also the director of several PCH group companies, was arrested under the prevention of money laundering Law (PMLA).
Allegations accused of cheat to use credit facilities by sending false documents to show higher turns and then transfer loans.
Furthermore, two other APIs were registered by the Central Investigation Bureau in Bengaluru and Chennai against PCH Group companies.
Ed Investigation revealed that the PCH Group company has used loans from various public sectors and private banks but failed to pay back.
The loan was transferred through a Shell company with the help of Chartered Accountants and operators entered Hyderabad and Mumbai.
This number was brought back to the PCH Group company to show reddish images about the financial health of the PCH group, to take advantage of more loans and for the intended initial public offering.
Ed said some money was transferred to Singh’s personal account and family members and relatives.
The probe revealed that Singh received 54 crores from various shell entities that did not have original business activities but were only used for money rotation.
Ed said: “This number is projected by Singh as a loan without a guarantee.
This funding source is only a syphoned-off loan and they are used to buy property on behalf of the company and in private capacity which is then mortgaged to the bank to utilize more credit facilities.
Loans without collateral This has not been repaid until now.
“Ed posted a PMLA case against the company accused based on the FIR registered by CBI Chennai’s economic wing.
The CBI, which submitted a previous Chargesheet, said PCH Private Limited Agent, Lifestyle PCH Private Limited and Singh caused the wrong loss to Bank Punjab and Sind, the George Town branch in Chennai.
HYD: Director PCH Ltd which was held for RS 370CR fraud
