CBI court jails firm proprietor for seven years in Rs 4 crore PNB loan case
A CBI court in New Delhi has sentenced a firm's proprietor to seven years' rigorous imprisonment and a Rs 1.6 lakh fine after he pleaded guilty in a Rs 4 crore PNB loan case, the CBI said.
Key points
- A special CBI court in New Delhi convicted a firm's proprietor on 24 October 2026 after he pleaded guilty, according to the CBI.
- The court sentenced him to seven years' rigorous imprisonment and a fine of Rs 1.6 lakh, the CBI said.
- The CBI alleged that a Rs 4 crore cash credit facility from Punjab National Bank was obtained on forged property documents.
A special CBI court at the Rouse Avenue District Courts in New Delhi has sentenced a firm's proprietor to seven years' rigorous imprisonment and a fine of Rs 1.6 lakh in a bank loan case, according to the Central Bureau of Investigation (CBI). The court convicted him on 24 October 2026 after he pleaded guilty. The case concerned a Rs 4 crore cash credit facility from Punjab National Bank's Jor Bagh branch in New Delhi.
What Happened
The CBI said it registered the case on 11 July 2013 against the proprietors of two firms, M/s Shankar Metals and M/s Super Machines, another accused and unknown persons. According to the CBI, the accused, in criminal conspiracy, obtained the Rs 4 crore cash credit facility from the bank on the strength of bogus and forged property documents and diverted the loan money to purposes other than those for which it was sanctioned.
The CBI said that in 2016 the convicted accused escaped from judicial custody while being produced before a court in Sonipat in another case. The trial court declared him a proclaimed offender, a person who avoids arrest despite a court's order, on 23 November 2017.
According to the CBI, it received information in January 2026 that he was living in Vadodara under a false identity. The agency traced him to a temple in Umrai, Banswara, and arrested him on 30 January 2026.
During the trial, he pleaded guilty to criminal conspiracy, cheating by personation, cheating, forgery of a valuable security, forgery for the purpose of cheating and using forged documents as genuine, the CBI said. The court then convicted and sentenced him.
What It Means
The case shows that bank loan cases can reach a verdict many years after they are registered, even when an accused escapes custody. A cash credit facility is a working-capital loan that lets a business draw money up to a set limit. The CBI's release does not give the outcome of the case for the other accused.
Bank customers who face a problem with their bank can complain to the bank first and then to the RBI at https://cms.rbi.org.in.
Source: CBI press release
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
Named in this report, or spotted an error? Corrections and responses: editor@oquilia.com. We correct errors promptly and record responses from named parties.
Sources & Citations
- CBI press release — Central Bureau of Investigation