CBI Searches Punjab AAP MLA’s Properties in Fraud Case

In a continuing investigation into a bank fraud case, the Central Bureau of Investigation is conducting searches at three sites, including Malerkotla (Punjab), at the properties of accused including private businesses, Directors/Guarantors. During searches, police discovered and collected around Rs.16.57 lakh in cash, 88 foreign currency notes, certain property papers, multiple bank accounts, and other incriminating documents.

On the basis of a complaint from the Bank of India in Ludhiana, a case was filed against a private firm headquartered in Gaunspura, Tehsil- Malerkotla (Punjab), and others, including the company’s directors, guarantors, another private firm, and unidentified public servants/private persons. The stated private enterprise, situated in Gaunspura, Malerkotla, was allegedly involved in the trade of DOC Rice Bran, DOC Mustard Cake, Cottonseed Cake, Maize, Bajra, and other food grains. The Bank granted loans to the borrower company four times between 2011 and 2014. The firm’s Directors were also accused of concealing hypothecated stock and diverting book debts with the malafide and dishonest aim of not making them available to the creditor Bank for examination and recovery as a secured creditor. The Bank allegedly suffered a loss of Rs.40.92 crores (approximately).

On 31.03.2014, the account was classed as NPA, then on 09.02.2018, the account was labelled as fraud due to anomalies, with an outstanding balance of Rs.40.92 Crore (approx).

It was also claimed that the accused’s loan was not used for the purpose for which it was obtained.

The investigation is ongoing.