KANPUR: In a significant development, the Central Bureau of Investigation (CBI) has filed an FIR against M/s Frost Infrastructure and Energy Limited, a private firm based in Kanpur, along with its directors, for allegedly defrauding Punjab National Bank (PNB) of ₹31.60 crore.
Allegations of Fraud
According to officials, the case was registered on Tuesday following a written complaint by Durgesh Kumar Tiwari, Chief Manager of PNB’s Kanpur branch, on November 11. The complaint accused the firm, its promoter-director Uday Jayant Desai, and directors Sunil Verma and Anoop Kumar Wadhera of orchestrating the fraud. Other unidentified individuals and public servants are also under investigation for their alleged involvement.
The complaint outlines that between 2012 and 2018, the accused individuals, in collusion with others, used forged documents and falsified accounts to siphon funds from PNB, causing a wrongful loss to the bank. It is alleged that the accused fraudulently obtained loans and credit facilities by misrepresenting facts, manipulating documents, and using false records as genuine to secure financial benefits.
Legal Charges
The accused face charges under multiple sections of the Indian Penal Code (IPC), including:
- Section 120-B: Criminal conspiracy
- Section 420: Cheating and dishonestly inducing delivery of property
- Section 467: Forgery of valuable security
- Section 468: Forgery for the purpose of cheating
- Section 471: Using forged documents as genuine
- Section 477A: Falsification of accounts
Investigation Underway
The case has been entrusted to Ankur Tripathi, an inspector with the CBI’s Anti-Corruption Branch (ACB) in Lucknow. Tripathi will lead the probe into the allegations, which involve significant financial irregularities. The investigation aims to uncover the role of unidentified public servants and other collaborators in the fraud.
Background of the Accused
M/s Frost Infrastructure and Energy Limited has its registered office on Birhana Road, Kanpur. The promoter-director Uday Jayant Desai, along with his associates, allegedly exploited banking systems to defraud the PNB branch in Kanpur. The alleged misconduct involved using forged documents to obtain undue financial advantages, causing severe losses to the bank.
CBI’s Statement
Senior CBI officials confirmed that the allegations in the complaint reveal cognizable offences under Indian law. They emphasized that the case highlights the critical need to monitor and scrutinize financial transactions in banking institutions.
Impact on PNB
The fraud has resulted in a loss of ₹31.60 crore to PNB, which has been struggling with rising non-performing assets (NPAs) in recent years. The case underscores ongoing concerns about financial mismanagement and systemic fraud in the banking sector.
The investigation is expected to examine the full extent of the fraud, identify other potential beneficiaries, and determine whether any lapses occurred in PNB’s internal controls that may have facilitated the fraud.
Further details are awaited as the investigation progresses.
