The Economic Offences Wing of Delhi Police have arrested four people including assistant general manager of Punjab National Bank and his son in connection with a Rs 7.5 crore PNB bank loan fraud to open a high-end luxurious bar in Delhi. All the four accused were involved in issuing loan on fabricated documents as the collateral offered to bank by the accused against the loan never existed.

The loan was issued from PNB Brady House, Mumbai branch where fugitive diamond merchant Nirav Modi is also booked in a multi crore bank fraud scam.

According to the police, the accused have been identified as and P K Varun, AGM, PNB Brady House bank in Mumbai, Amarjeet Singh (34) and Ajay Sharma, Suresh.

A senior police official said that Amarjeet and others with connivance of AGM and bank manger of PNB back had sanctioned loan of Rs 7.5 Crores to open a luxurious F Bar and Lounge at Connaught Place, New Delhi. Official said, AGM Varun's son owned 20 per cent of share in F Bar & Lounge in the operation.

"During interrogation, it was revealed that the accused Ajay Sharma, the kingpin, in connivance with Amarjeet Singh first opened a shell company 'Ply Mouth Ventures Pvt Ltd' at Mumbai. Suresh was made one of the Directors in this company. They availed Rs. 5 crores cash credit facility on shell Company and was further transferred into other accounts and siphoned off. They also obtained Rs. 2 crores OD facility from the same bank which was also transferred into another account and misappropriated, "said Suvashis Choudhary, Additional CP, EOW, Delhi Police.

Police said that these amounts were sanctioned against the collateral security of the properties situated at Delhi which were bogus and never existed.

" During investigation it was found that the account holders had never visited the Mumbai branch from where the loan was issued. All formalities of opening of account as well as equitable mortgage of property were facilitated in Delhi by AGM P.K. Varun, violating existing norms and SOP of the bank," Additional CP said.

Even false reports of site inspection and the revenue records had been given as green signal to facilitate the loan.The F Bar & Lounge closed without repaying the loans and others liabilities three years after.

Efforts are being made to arrest the absconding branch manager of Brady House of PNB Mayur Vihar, Phase III Branch. Several cases are registered against these persons in Delhi/NCR.

KEY DETAILS

Police say, the accused have been identified as P K Varun, Amarjeet Singh, Ajay Sharma, and Suresh. Loan was sanctioned against collateral security of properties that were bogus and never existed