A case has been registered against two city-based hotels and their promoters by the Central Bureau of Investigation (CBI). The police claim that the case has been booked for cheating Punjab National Bank and the Punjab Sind Bank of over Rs 159 crore.
The hotels availed credit facility from banks for business purpose, however, used it for their personal purpose. They slipped the loan account into NPA in May 2016. Even after many reminders by the banks, the companies failed to submit the required information to the auditor for conducting the forensic audit.
However, it was found that the companies had routed funds outside the consortium. The two companies asked the contractors and suppliers to allegedly divert the funds. Besides this, the companies invested funds in mutual funds and did not return the withdrawn amount to the banks.
After observing that the companies misappropriated funds of the banks and diverted them for personal use, CBI registered a case and the investigation is on.