The Enforcement Directorate (ED) has conducted raids in Jammu and Kashmir, Punjab, and Uttar Pradesh in connection with an alleged bank loan fraud case amounting to Rs 200 crore linked to Bharat Papers Ltd. (BPL), according to official sources.
Under the Prevention of Money Laundering Act (PMLA), the central agency is searching at least nine premises in these regions. BPL, established in September 2006, is an affiliate of Bharat Box Factory Industries Limited (BBFIL), a paper board packaging industry with operations in Jammu and Ludhiana.
The directors of the company, namely Rajinder Kumar, Parveen Kumar, Baljinder Singh, Anil Kumar, and Anil Kashyap, are accused of committing a bank loan fraud of approximately Rs 200 crore with a consortium of banks. The consortium is led by the State Bank of India, along with J&K Bank, PNB, and Karur Vysya Bank.
The allegations include the accused diverting funds to sister concerns and fictitious entities, as well as engaging in the sale of imported/indigenous machinery without obtaining the necessary permissions from the lender banks, using counterfeit invoices. The ED's raids aim to gather evidence and further investigate the alleged financial irregularities.