In a recent development related to a Rs 350 crore bank fraud case, the Enforcement Directorate (ED) conducted searches at six locations linked to Punjab Basmati Rice Limited. The searches led to the recovery of Rs 8.50 lakh in cash and $8,600, suspected to be connected to money laundering activities.
The ED’s Jalandhar Zonal Office carried out the searches on June 5 at various premises associated with Punjab Basmati Rice Limited and its Directors/Promoters, including Kulwinder Singh Makhni. The company and its officials are accused of being involved in a bank fraud amounting to Rs 350.84 crore, causing losses to six consortium member banks, with Canara Bank being the lead bank.
Following an FIR filed by the CBI in New Delhi, the ED launched an investigation into Punjab Basmati Rice Limited and others under relevant sections of the IPC and the Prevention of Corruption Act. The company allegedly defrauded the bank consortium and diverted funds from public sector banks, benefiting the Promoters/Directors.
During the search operation, the ED seized incriminating records, electronic devices, and cash totaling Rs. 8.50 lakh and $8,600 under the provisions of the Prevention of Money Laundering Act, 2002. The accused company and its directors are said to have engaged in fraudulent activities by showing sales to fictitious entities and using shell companies for cash withdrawals from the sale proceeds.
In a separate incident, the ED in Hyderabad conducted searches related to the Transport Scam – Andhra Pradesh Liquor case. The operation resulted in the seizure of a luxury car, expensive watches worth Rs 94.5 lakh, and various incriminating documents, leading to the arrest of two individuals under the Prevention of Money Laundering Act, 2002.
