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The Enforcement Directorate (ED) carried out raids in Jammu and Kashmir, Punjab, and Uttar Pradesh on Wednesday in connection with an alleged ₹200 crore bank loan fraud linked to Bharat Papers Ltd. (BPL). The central agency is conducting searches at least nine premises under the provisions of the Prevention of Money Laundering Act (PMLA).
Bharat Papers Ltd. Background: Incorporated in September 2006, BPL is associated with Bharat Box Factory Industries Limited (BBFIL), a paperboard packaging industry based in Jammu and Ludhiana.
Fraud Allegations: The primary accusations involve the directors of BPL perpetrating a bank loan fraud of approximately ₹200 crore with a consortium of banks, led by the State Bank of India. Other banks involved include J&K Bank, PNB, and Karur Vysya Bank.
Modus Operandi: It is alleged that the accused directors diverted funds to sister concerns and bogus entities. Additionally, they purportedly engaged in the sale of imported/indigenous machinery without the lender banks’ permission, raising “fake” invoices in the process.
Accused Directors: The directors of Bharat Papers Limited named in the case are Rajinder Kumar, Parveen Kumar, Baljinder Singh, Anil Kumar, and Anil Kashyap.
The ED’s raids are part of the ongoing efforts to investigate financial irregularities and fraud, emphasizing the need for stringent measures to curb fraudulent activities in the banking sector.
