CBI Conducts Searches in Hyderabad and Odisha in Rs. 48.48 Crore Bank Fraud Case Involving PCH Corporation and PCH Retail
Hyderabad/Bhubaneswar, September 19, 2026: The Central Bureau of Investigation (CBI) has conducted coordinated searches at multiple locations in Hyderabad and Odisha as part of an ongoing investigation into an alleged bank fraud involving M/s PCH Corporation Ltd. and M/s PCH Retail Ltd. The case concerns an alleged wrongful loss of Rs. 48.48 crore to Punjab National Bank (PNB) and involves the two companies, their directors and unknown public servants.
The searches were carried out on September 19, 2026, by the CBI’s Bank Securities and Fraud Branch (BSFB), Bengaluru, which is investigating the case. The operation forms part of the agency’s efforts to gather evidence, examine the alleged financial irregularities and establish the roles of the individuals connected with the case.
According to the CBI, the case was registered following a complaint by Punjab National Bank’s Chennai office. The complaint alleged that the companies and their directors were involved in criminal conspiracy, cheating and activities that resulted in a substantial financial loss to the bank.
Allegations of Diversion and Misappropriation of Stock Sale Proceeds
According to the First Information Report (FIR), the accused allegedly disposed of the entire stock of goods that had been hypothecated to the lending banks without informing the banks concerned. Hypothecation is a financial arrangement in which assets, such as business inventory, are offered as security against a loan while remaining in the borrower’s possession.
The CBI alleges that the companies disposed of these secured stocks without obtaining the necessary information or consent from the lender banks. It is further alleged that the proceeds generated from the sale of the goods were not routed through the designated loan accounts, as required under the relevant banking arrangements.
Instead, the complaint alleges that the sale proceeds were misappropriated, preventing the banks from receiving the funds through the appropriate channels. These alleged actions are being investigated as part of a suspected scheme involving the diversion of secured business assets and the handling of funds generated from their sale.
The alleged conduct is being examined in connection with offences including cheating, criminal breach of trust, criminal misappropriation and criminal conspiracy. The CBI is investigating whether the actions of the borrower companies and their directors resulted in the wrongful loss of Rs. 48.48 crore to Punjab National Bank.
Searches Conducted at Multiple Locations
As part of the investigation, the CBI carried out coordinated search operations at several locations in Hyderabad and Odisha on September 19. The premises searched included the residential properties of directors associated with M/s PCH Corporation Ltd. and M/s PCH Retail Ltd.
During the searches, investigators recovered and seized documents and digital evidence considered relevant to the case. The material reportedly includes records that could help the agency examine the companies’ financial activities and understand the transactions connected with the alleged fraud.
The seizure of documentary and electronic evidence is expected to assist investigators in reconstructing the movement of funds, examining the disposal of hypothecated stocks and determining whether the proceeds from those sales were diverted away from the designated loan accounts.
The agency is also examining the material to identify the involvement of other individuals, establish the sequence of events and assess the extent of the alleged conspiracy.
Digital Evidence and Financial Records Under Scrutiny
The CBI is currently scrutinising the seized material to determine the full scope of the alleged financial irregularities. Investigators are focusing on tracing the movement and possible diversion of funds, examining relevant business records and establishing the specific roles played by the companies, their directors and any other persons found to be connected with the transactions.
Digital evidence may help investigators identify relevant communications, financial records and transaction details that could provide further information about the alleged disposal of secured inventory and the handling of the resulting proceeds.
The investigation will also seek to establish how the alleged transactions took place, where the money went and whether other individuals or entities were involved in the suspected financial arrangements.
However, the allegations remain under investigation, and the responsibility of each individual or company involved will be determined through the legal process.
CBI Investigation Continues
The case highlights the financial and legal risks associated with the alleged misuse of assets pledged as security against bank loans. Lending institutions rely on borrowers to comply with agreed terms governing secured inventory and the use of proceeds generated from its sale.
If secured assets are disposed of without following the applicable banking arrangements, and the resulting proceeds are diverted, lenders may face significant financial exposure. In this case, Punjab National Bank’s complaint prompted the registration of a CBI case to investigate the alleged loss of Rs. 48.48 crore.
The coordinated searches in Hyderabad and Odisha represent a further step in the agency’s efforts to collect evidence and trace the suspected movement of funds. The CBI has stated that the investigation remains in progress, with the seized documents and digital material being examined to determine the full extent of the alleged offences.
Further action will depend on the findings of the ongoing investigation and the evidence gathered by the agency.
News Source: Central Bureau of Investigation (CBI) – Official Press Release
