CBI case has been registered against PSL Group and for allegedly defrauding its directors Canara Bank 428.50 crore by default on debt repayment, officials said. He said the agency conducted searches at seven locations in Mumbai and Gujarat’s Kutch on Thursday, resulting in the recovery of incriminating documents.

In addition to the company, the CBI has also named its directors Ashok Yogender Punj, Rajender Kumar Bahri, Chitranjan Kumar, Jagdishchandra Goel and Alok Yogender Punj as accused in the case.

Acting on the complaint of the bank, the CBI has taken over the investigation after the FIR was registered.

It is alleged that the accused entered into a conspiracy to defraud Canara Bank during 2016-19 and sought sanction of various credit facilities, officials said, adding that the accused misrepresented the ledger, misappropriated bank funds and removed receivables from its debtors.

A CBI spokesperson said, “It was further alleged that the loan amount received from the bank for various projects was utilized for other purposes for which it was taken. Rs 428.50 crore (approx) to Canara Bank was received. alleged damage was done.”