Shimla/Jalandhar, June 12: The Directorate of Enforcement (ED), Jalandhar Zonal Office, has conducted searches at six business and residential premises linked to Punjab Basmati Rice Limited (PBRL), its promoters, directors, and associates, including Kulwinder Singh Makhni, in connection with an alleged bank fraud of ₹350.84 crore.
According to an ED, the searches were carried out on June 5 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The action stems from a case registered by the Central Bureau of Investigation (CBI), New Delhi, against Punjab Basmati Rice Limited and others for allegedly cheating a consortium of six banks led by Canara Bank.
The ED said its investigation has revealed that the company and its promoters/directors allegedly defrauded the banking consortium by diverting loan funds meant for business operations, causing a loss of ₹350.84 crore to public sector banks while generating illegal gains for themselves.
Investigators have alleged that the company manipulated its financial records by showing the sale of stock to fictitious entities, which were subsequently reflected as debtors in the books.
The ED further claimed that several shell companies were used to route transactions, while sale proceeds were allegedly withdrawn in cash to conceal the trail of funds.
During the search operations, the agency recovered and seized various incriminating documents, electronic devices, cash amounting to ₹8.50 lakh, and foreign currency worth USD 8,600.
The Enforcement Directorate said the investigation is continuing and further action will be taken based on evidence gathered during the searches.
