ED conducts raids in several states following financial fraud amounting to Rs 200 crores

New Delhi [India], February 2 : The Enforcement Directorate (ED) has conducted search operations on January 31, 2024, at 10 locations spread over Jammu and Kashmir, Punjab, and Uttar Pradesh in connection with a case registered under the provisions of Prevention of Money Laundering Act (PMLA), 2002, against M/s Bharat Papers Limited, said an official statement on Friday.
Searches have been conducted at multiple locations including office, residential premises related to the present and past directors of M/s Bharat Papers Limited, M/s International Traders and M/s Choudhary Industrial Projects Pvt. Ltd, according to the statement.
ED initiated investigation on the basis of FIR registered by CBI against Bharat Papers Limited and its directors, namely Rajinder Kumar Aggarwal, Parveen Kumar Aggarwal, Anil Kumar, and Baljinder Kumar Aggarwal.
ED investigation revealed that Bharat Papers Limited and its directors have perpetrated bank loan fraud amounting to approx Rs 200 Crores with consortium of banks with lead bank as State Bank of India.
The other banks include J&K, PNB and Karur Vysya Bank. ED investigation also revealed a criminal conspiracy on the part of directors of Bharat Papers Limited for syphoning of loan amounts through bogus firms, added the statement by ED.
The company was found to have been involved in secretly removing machine parts and selling the same using fake invoices without permission from consortium of banks, said the statement.
During the course of searches, Indian Currency of more than Rs 30 lakhs, around 600 grams of gold, bank account, lockers and various incriminating documents in the form of property documents, hard disk, digital devices, digital evidence and loose papers were found and frozen or seized.
Further investigation is under progress.