Jalandhar, June 12 (SocialNews.XYZ) In fresh action in a Rs 350 crore bank fraud, the ED searched six premises of Punjab Basmati Rice Limited and its officials and recovered Rs 8.50 lakh in cash and $8,600 in connection with suspected money laundering, an official said on Friday.
The Directorate of Enforcement (ED), Jalandhar Zonal Office, carried out search operations on June 5 at six different business and residential premises relating to Punjab Basmati Rice Limited (PBRL) and its Directors/Promoters, including Kulwinder Singh Makhni and others, the official said in a statement.
Punjab Basmati Rice Limited and its Promoters/Directors were involved in a bank fraud of Rs 350.84 crore, causing loss to six consortium member banks led by Canara Bank.
The ED initiated an investigation on the basis of an FIR registered by CBI, New Delhi, against PBRL and others under various Sections of the IPC, 1860 and Section 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988.
The company, through its Directors/Promoters, defrauded the bank consortium to the tune of Rs 350.84 crore and diverted the funds of public sector banks, causing corresponding gains to the Promoters/Directors, the ED said.
The accused company and its directors had shown the sale of stock to fictitious entities, which were shown as debtors. Furthermore, some other shell entities were used to sell stock, and the sale proceeds were withdrawn in cash, the ED said.
During the course of the search, various incriminating records, including electronic devices and cash amounting to Rs. 8.50 lakh and $8,600, were recovered and seized from the searched premises under the provisions of the Prevention of Money Laundering Act, 2002.
In a separate case, the ED, Hyderabad, conducted a search operation on Thursday under the PMLA, 2002 at five premises of Kessireddy Raja Shekhar Reddy, Dontireddy Vasudeva Reddy, Vijaya Narasimha Reddy, Vallu Sandeep and Karumuri Nageswara Rao and Karumuri Sunil Kumar in Hyderabad related to Transport Scam – Andhra Pradesh Liquor, an official said.
During the search operation, a luxury car, costly watches valued at Rs 94.5 lakh, and incriminating documents, including suspicious joint venture agreements, unaccounted cash transactions, and property documents, were seized, the ED said.
Further, Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy were arrested on Friday under PMLA, 2002, the ED said.
Source: IANS
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