Another case of bank fraud came into limelight as CBI carried out the investigation. CBI books owners of Punjab Basmati Rice Ltd after the scam of 352 crores.
CBI Searches Premises
The establishments of Punjab Basmati Rice Limited and its directors Kulwinder Singh Makhani, Jasmeet Kaur, and Manjeet Singh Makhani were searched. Also, the CBI looked into the company offices in Amritsar. The Canara bank reported the fraud to the RBI in March 2019. Subsequently, it filed a complaint with the Central Agency in June 2020. CBI has booked all for allegedly cheating the consortium led by Canara Bank to the tune of Rs 352 Crores.
The consortium comprises other banks including Andhra Bank, IDBI, OBC, UBI, and UCO Bank. Also, the investigation found out that the company maintained a current account with non-lending banks without obtaining no-objection certificates from the lending banks. They used this account to divert sales proceeds detrimental to the interests of the bank.
Owners Fled to Canada Two Years Back
The director, Manjeet Singh Makhani flew to Canada with his family two years back in 2018 after defrauding. His passport was revoked in September 2018. The General Manager of Canara Bank, Chandigarh lodged an FIR on 1st June against all the directors who are the family members of Manjeet. Also, the bank alleged the company of disposing of rice stock which was the primary security with the bank. The banks in the consortium suffered separate losses.
Canara Bank Cheated of Rs 174.89 Crores, 5 Other Banks of 177 Crores
The accused owes Rs 174.89 crore to the Canara bank. Also, other dues include 53 crores with Andhra Bank, 44 crores with UBI, 25 crores with OBC, 14 crores with IDBI, and 41 crores with UCO Bank. The company received credit facilities from the bank on 12th April 2003. Also, the bank classified the account as NPA on 25th April 2018 as the establishment defaulted in the reimbursement of principal debt and instalments.
In all, forensic audits disclosed the fraudulent diversion of funds.