PNC Infratech shares fall 9% after CBI raids over bribery case

PNC Infratech’s shares took a beating on June 11, plunging over 9% to Rs 471 apiece. This sharp decline followed search operations conducted by the Central Bureau of Investigation (CBI) at the residences of the company’s managing director, Yogesh Kumar Jain, and whole-time director, Talluri Raghupati Rao, as well as its Agra office.

The CBI’s actions are related to a Rs 10 lakh bribery case. While Jain and Rao were not arrested during the raids, four PNC employees – Satyanarayana Annguluri, Brijesh Mishra, Anil Jain, and Shubham Jain – were taken into custody. However, Jain has been summoned to appear before the CBI office in New Delhi.

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Reports suggest that the CBI apprehended two National Highways Authority of India (NHAI) officials accepting a bribe of Rs 10 lakh from PNC employees in Madhya Pradesh. This bribe was allegedly in exchange for final approval, a no-objection certificate, and the processing of the final bill for NHAI’s Jhansi-Khajuraho project.

PNC Infratech has maintained that it is a law-abiding company. However, if found guilty of bribery, companies have faced bans from bidding for periods ranging from 1 to 3 months in the past.

As of 12:22 PM the shares were trading 8.10% lower at ₹479.35.