CBI has booked Apple Industries Limited and its directors for defrauding Punjab National Bank of ₹247.84 crore. The case involves cheating, document fabrication, and illegal fund diversion, with links to foreign entities. A major action under the Bharatiya Nyaya Sanhita highlights rising scrutiny of corporate financial crimes.
The Central Bureau of Investigation (CBI) has registered a case against a Delhi-based company, Apple Industries Limited, and its directors for allegedly defrauding Punjab National Bank (PNB) of ₹247.84 crore. The move follows a detailed complaint filed by Kamal Agarwal, Chief Manager of the Zonal Sastra Centre of PNB, located at Bhikaji Cama Place, New Delhi.
The case, registered on June 4, accuses the promoters and directors of Apple Industries of engaging in a series of financial crimes, including cheating, criminal breach of trust, misappropriation of bank funds, and fabricating documents with the intent to siphon off the bank’s money.
The FIR names Apple Industries Limited, with its registered office at Netaji Subhash Palace, Pitampura, along with company promoter Pawan Kumar Garg, and directors Narendra Kumar Garg, Yogender Kumar Garg, Akash Gupta, and Ashish Garg. The CBI has also included unnamed public servants and private individuals in the list of accused.
According to the complaint, Apple Industries was involved in manufacturing and trading sponge iron and billets. The company, promoted by Pawan Kumar Garg of Banjara Hills, Hyderabad, had secured a substantial credit facility from PNB in 2008. This included a term loan of ₹58 crore and a cash credit limit of ₹15 crore. The loan was sanctioned following due diligence, board resolutions, and the creation of an equitable mortgage using the company’s immovable assets located in Anantapur district, Andhra Pradesh.
Evidence of Fraud
The case gained momentum after multiple red flags were raised through internal audits and official reports. The Income Tax Department had sent a letter to the Department of Financial Services (DFS) in December 2018, indicating that group entities of Apple Industries lacked adequate assets. This report further hinted that the bank loans might have been siphoned off. These suspicions were substantiated by PNB’s forensic audit, which found evidence pointing toward illegal fund diversion to related entities abroad, including in Hong Kong.
The bank’s complaint alleged that the accused conspired with each other and with unknown individuals to cause a wrongful loss to the bank and gain personal financial benefits. The accused are believed to have fabricated documents, misrepresented the company’s financial status, and routed funds illegally to other group firms, violating the terms and conditions of the loan agreement.
Based on the bank’s findings and recommendations, the CBI has invoked provisions under the Bharatiya Nyaya Sanhita (BNS), India’s newly implemented criminal code. The charges include fraud, criminal breach of trust, cheating, criminal misappropriation, and criminal conspiracy. The federal agency’s Bank Securities and Fraud Branch (BS&FB), Delhi, is handling the investigation.
Kamal Agarwal, the complainant and Chief Manager of PNB, urged the CBI to act promptly against the accused to recover the dues and prevent further misuse of public funds. “It is, therefore, requested to book the culprits under applicable provisions of law and to take the requisite action against the offending persons,” Agarwal stated.
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This case highlights yet another instance of large-scale corporate fraud within India’s banking sector, drawing attention to systemic vulnerabilities in loan disbursal and monitoring. With banks struggling to manage non-performing assets (NPAs), such incidents reinforce the need for tighter scrutiny, real-time audits, and improved coordination between regulatory bodies.
The CBI’s action signals a stronger stance against financial misconduct, particularly involving public sector banks, which are custodians of public money. The ongoing investigation may also unravel more such fraudulent entities operating under similar mechanisms.
