New Delhi, Sep 15 (PTI) The CBI has filed a case against PSL Group and its directors for allegedly cheating Canara Bank to the tune of Rs 428.50 crore by defaulting on credit repayments, officials said.

The agency on Thursday conducted searches at seven locations in Mumbai and Kutch, Gujarat, resulting in the recovery of incriminating documents, they said.

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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 a complaint by the bank, the CBI has taken over investigation after the registration of the FIR.

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It is alleged the accused entered into a conspiracy to cheat Canara Bank during 2016-19 and sought sanction of various credit facilities, the officials said, adding the accused misrepresented the account books, misutilised the funds of the bank and diverted receivables from its debtors.

"It was further alleged that the loan amount received from the bank for various projects was utilized for purposes other than for which it was availed. An alleged loss of Rs 428.50 crore (approx) was caused to Canara Bank," a CBI spokesperson said.

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