CBI Conducts Searches in Hyderabad and Odisha in ₹48.48 Crore Bank Fraud Case Involving PCH Corporation and PCH Retail
Hyderabad/Odisha, September 19, 2026: The Central Bureau of Investigation (CBI) has carried out coordinated search operations at multiple locations in Hyderabad and Odisha as part of its investigation into an alleged ₹48.48 crore bank fraud involving M/s PCH Corporation Ltd. and M/s PCH Retail Ltd. The case also names the companies’ directors and unknown public servants as accused.
The searches were conducted on September 19, 2026, by the CBI’s Bank Securities and Fraud Branch (BSFB), Bengaluru, which registered the case following a complaint filed by Punjab National Bank (PNB), Chennai. The investigation centres on allegations of cheating, criminal conspiracy and the alleged diversion of funds generated from the sale of business stocks pledged as security against bank loans.
During the search operations, the agency recovered and seized documents and digital evidence believed to be relevant to the investigation. The seized material is now being examined to establish the full extent of the alleged financial irregularities, trace the movement of funds and determine the roles of the individuals connected with the case.
PNB Complaint Leads to CBI Investigation
According to the CBI, the case was registered against M/s PCH Corporation Ltd., M/s PCH Retail Ltd., their directors and unknown public servants based on a complaint submitted by Punjab National Bank’s Chennai office.
The complaint alleged that the accused were involved in activities that caused a wrongful loss of ₹48.48 crore to the bank. The allegations relate to the disposal of business stocks that had been hypothecated to lending banks without informing the lenders and the alleged failure to route the proceeds from those sales through the designated loan accounts.
Hypothecation is a financial arrangement in which a borrower offers assets, such as business inventory, as security for a loan while retaining possession of them. Such arrangements generally require borrowers to comply with the terms agreed upon with the lending institution, including applicable conditions governing the sale of secured inventory and the handling of sale proceeds.
In this case, the CBI alleges that the companies disposed of their entire hypothecated stock without informing the lender banks. It is further alleged that the money generated from these sales was not deposited or routed through the relevant loan accounts as required under the banking arrangements.
Alleged Diversion of Funds Under Scrutiny
According to the allegations recorded in the FIR, the sale proceeds from the hypothecated stocks were allegedly misappropriated instead of being handled through the designated loan accounts. The agency is investigating whether these actions were part of a wider arrangement involving the borrower companies and their directors.
The alleged transactions have raised questions about how the secured inventory was disposed of, where the resulting funds were transferred and whether the banks were deprived of money that should have been accounted for against the outstanding loans.
The CBI is examining the matter under allegations involving cheating, criminal breach of trust, criminal misappropriation and criminal conspiracy. The investigation is intended to establish the circumstances surrounding the transactions and identify the individuals responsible for any wrongdoing supported by the evidence.
The alleged wrongful loss to Punjab National Bank stands at ₹48.48 crore, making the case a significant financial investigation for the agency.
Searches Conducted at Several Locations
As part of its investigation, the CBI conducted coordinated searches at multiple premises in Hyderabad and Odisha. The locations covered included the residential premises of directors associated with PCH Corporation Ltd. and PCH Retail Ltd.
During these searches, investigators recovered and seized incriminating documents and digital evidence, including records considered relevant to the alleged bank fraud. Such material may help the agency examine business transactions, financial records and communications connected with the disposal of the secured stocks and the handling of the proceeds.
The CBI is now scrutinising the seized evidence to understand the complete scope of the suspected conspiracy. Investigators are also working to trace the movement and possible diversion of funds and establish the specific roles played by the accused individuals and any other persons who may emerge during the investigation.
Digital Records and Documents Being Examined
Financial fraud investigations often require investigators to piece together transactions across different accounts, business records and electronic communications. In this case, the documents and digital evidence seized during the searches are expected to assist the CBI in examining the alleged movement of money and the handling of the companies’ secured inventory.
The agency will seek to determine how the sale proceeds were managed, whether the relevant loan-account requirements were bypassed and whether additional individuals or entities were involved in the alleged transactions.
The investigation may also help establish the extent of the banks’ financial exposure and clarify the sequence of events that led to the alleged loss. However, the findings will depend on the evidence gathered and analysed by the investigating agency.
Further Investigation Continues
The CBI has confirmed that the investigation remains in progress. The searches form part of its continuing efforts to collect evidence, trace the alleged diversion of funds and establish accountability in the case.
The matter highlights the importance of transparency in lending arrangements and the proper handling of assets pledged as security against bank loans. Banks rely on borrowers to comply with agreed conditions to protect their financial interests and ensure that secured assets and the proceeds from their sale are appropriately accounted for.
The alleged diversion of proceeds from hypothecated stocks, if established through the investigation and judicial proceedings, could have significant implications for the companies and individuals found responsible.
For now, the CBI is continuing to examine the seized material and investigate the roles of all persons connected with the case. The allegations against the companies and individuals remain subject to the legal process, and guilt will be determined by the competent court.
News Source: Central Bureau of Investigation (CBI) – Official Press Release
