The Enforcement Directorate’s Jammu Sub-Zonal Office has lodged a chargesheet under the Prevention of Money Laundering Act against M/S Bharat Papers Limited and its directors. The charges involve a bank loan fraud of around Rs 200 crore linked to a consortium of banks led by the State Bank of India. Investigations revealed fraudulent diversion and misuse of loan funds through various deceptive means between 2008 and 2013.
The accused individuals allegedly engaged in a criminal conspiracy to illicitly obtain bank loans, diverting the funds for unauthorized purposes. The investigation uncovered a complex scheme involving the misuse of funds through bogus entities, cash withdrawals, and manipulation of accounts. The group allegedly used shell companies to layer and siphon off funds, disguising the trail of transactions.
The Enforcement Directorate disclosed that during searches in Jammu and Kashmir, Punjab, and Uttar Pradesh, incriminating documents, digital evidence, cash exceeding Rs 30 lakh, and approximately 600 grams of gold were seized. Anil Kumar, a director of Bharat Papers Limited, was arrested during the investigation. The Proceeds of Crime were reportedly diverted and utilized for acquiring immovable properties, leading to the provisional attachment of properties worth Rs 66.77 crore.
Investigations also revealed non-cooperation by Bharat Papers Limited and its directors in the Corporate Insolvency Resolution Process. The agency highlighted the lack of cooperation in handing over records for proceedings before the NCLT Chandigarh bench. The Enforcement Directorate stated that further investigations are ongoing.
