The Enforcement Directorate (ED) on Friday said it had conducted search operations on Thursday in connection with a bank loan fraud case.
The searches were conducted at the business and residential premises of the accused persons and their associates including Tara Corporation Limited (renamed as Malaudh Agro Limited), its directors Jaswant Singh, Balwant Singh, Kulwant Singh, Tejinder Singh, their associates and other sister concerns.
The raids were conducted at Ludhiana, Malerkotla, Khanna, Payal and Dhuri.
During the course of search, various incriminating evidence were recovered and seized. They were related to bogus firms through which turnover of Tara Corporation Limited (TCL) was inflated and loan funds were siphoned off by the accused.
Mobile phones, hard drives and Indian currency worth Rs 32 lakh were also seized from the search premises.
The ED had initiated money laundering investigation on the basis of the FIR registered by the CBI.
Bank of India, Model Town Branch, Ludhiana had sanctioned loan on cash credit limits aggregating Rs 35 crore as against hypothecation of stocks and book-debts in 2011 under sole banking arrangement. The account was also sanctioned an ad-hoc limit of Rs 6 crore in February 2014, which is yet to be repaid by the company.
The account of TCL was declared as NPA in 2014. The aggregate loan outstanding is Rs 76 crore.
Jaswant Singh, Balwant Singh, Kulwant Singh and Tejinder Singh were directors and guarantors in the loan account of Tara Corporation Limited.
When a fresh search was initiated by the bank in May 2016, it was observed that there was a drastic change in the directors of the company and Kirpal Singh Tiwana, Harish Kumar and Lakhbir Singh had been appointed as directors of TCL and a ‘principal person’ Balwant Singh had resigned from the directorship.
Later on, Balwant Singh had also been re-appointed as director of the company in 2016.
“On the basis of information available, investigation was initiated against the above said persons and their associates in order to ascertain the money laundering activities undertaken by them for laundering their proceeds of crime,” the official said.