Panchkula, Jan. 11 -- The special judicial magistrate for the Central Bureau of Investigation (CBI) in Panchkula has sentenced two persons to imprisonment in a major bank fraud case involving Punjab National Bank (PNB), Jind. Phool Chand (84), proprietor of M/s Singla Agro Industries, was awarded one year of simple imprisonment, while his co-accused Rajinder Kumar was sentenced to two years in jail. Both were convicted under Sections 120B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code (IPC) and were also fined Rs.25,000 each. The case originated from a complaint filed in August 2023 by the chief manager of PNB, Jind. The investigation revealed that the fraud stemmed from credit facilities initially sanctioned to M/s Singla Agro Industries in 2005. The firm had secured a Rs.50 lakh limit for its rice milling business, which was subsequently enhanced multiple times. By December 2021, the account had turned into a non-performing asset (NPA), with outstanding dues exceeding Rs.5.65 crore. The court held that the accused deliberately misrepresented the financial position of the borrower firm to the bank. It found that falsified stock statements and balance sheets were submitted, inflating debtor values and turnover to secure higher credit limits and enhanced drawing power, with the intention to cheat the bank. The prosecution also proved that loan funds were diverted from the cash credit account to sister concerns and other entities. These transactions were backed by fake invoices, as no actual sale or purchase of goods had taken place. Further, evidence showed that unjustified cash withdrawals were made through the firm's accountant, in violation of the terms and conditions of the sanction letter and loan agreement. Based on oral and documentary evidence, the court concluded that the accused acted in collusion, causing a wrongful loss of Rs.5.65 crore to the bank and a corresponding wrongful gain to themselves. During sentencing, the defence sought leniency, citing that the outstanding amount had been repaid under a one-time settlement (OTS). However, the court observed that repayment did not negate the offence, as the loss was caused through deliberate misrepresentation and diversion of funds. Although the accused were convicted on December 24, the court pronounced the quantum of sentence this week, bringing the legal proceedings in the multi-crore fraud case to a close....