Mohali, May 18 -- More than 15 years after a Punjab National Bank loan fraud involving fake firms, forged invoices and diversion of over Rs.87 lakh surfaced in Faridkot, a special CBI court in Mohali convicted two directors of a cement company but released them on probation, citing full repayment of the bank dues, absence of dishonest intention at the time of availing the loan and mitigating personal circumstances.

Special judge Dinesh Kumar Wadhwa convicted Balwinder Singh and his brother-in-law Sukhwinder Singh, directors of M/s Maha Sagar Cement Co Pvt Ltd, under Sections 420, 468, 471 and 120-B of the Indian Penal Code in the case registered by the CBI's Chandigarh branch in 2011.

According to the allegations, the accused fraudulent...