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Producer Bunty Walia booked by CBI in bank fraud case

New Delhi: The CBI has registered a case against film producer Jaspreet Singh Walia alias Bunty Walia in an alleged bank fraud that caused a loss of over Rs 119 crore to IDBI Bank. In its complaint, the bank has alleged that GS Entertainment Pvt Ltd (GSEPL) was sanctioned a foreign currency loan (FCL) of USD 2.35 million (equivalent to Rs 10 crore then) and a term loan (RTL) of Rs 4.95 crore in June.

By Priyanka Verma 
Updated Date

New Delhi: The CBI has registered a case against film producer Jaspreet Singh Walia alias Bunty Walia in an alleged bank fraud that caused a loss of over Rs 119 crore to IDBI Bank. In its complaint, the bank has alleged that GS Entertainment Pvt Ltd (GSEPL) was sanctioned a foreign currency loan (FCL) of USD 2.35 million (equivalent to Rs 10 crore then) and a term loan (RTL) of Rs 4.95 crore in June.

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In 2008, on personal guarantees of Walia and others under the film financing scheme for the production of the Hindi film “Lamha” starring Sanjay Dutt, Bipasha Basu.As per the original schedule, the film was to release in 2009, but got delayed since March 2009 due to a dispute between the promoters and the exhibitors, the bank alleged. The account became a non-performing asset (NPA) on September 30, 2009.

Subsequently, the Bank appointed PVR as the sole distributor for the worldwide release of the film, subject to the execution of a suitable tripartite agreement between GSEPL, PVR and IDBI Bank, as well as payment of an amount of eight crore rupees by PVR. Also fulfilled the commitment to invest. Necessary expenditure on print and publicity and completion of balance post-production work.

The bank has alleged that a tripartite agreement was entered into between the bank, GSEPL and PVR on June 2, 2010. “However, PVR failed to honor its commitment as it incurred a loss of approximately Rs 83.89 lakh. The total revenue collected by it was Rs 7.41 crore, while the expenditure incurred by it on promotion and distribution was Rs 8.25 crore.

A forensic audit revealed that the company had submitted a “fraudulent utilization certificate”, diverted the bank’s funds and fudged the account books, the bank has alleged. It has accused GSEPL of cheating, falsification of records, misappropriation of public money, misrepresentation and criminal breach of trust which resulted in the loan being declared fraudulent. The agency has named Walia, GSEPL and others under Indian Penal Code (IPC) sections related to criminal conspiracy, cheating and forgery as well as provisions of the Prevention of Corruption Act.

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