ED conducts raids at Bharat Papers premises across three states
The Enforcement Directorate (ED) has conducted search operations on 31December 2024 at 10 locations spread over Jammu & Kashmir, Punjab and Uttar Pradesh in connection with Bharat Papers Limited loan fraud case.
The searches under the provisions of Prevention of Money Laundering Act (PMLA), 2002 were conducted at multiple locations including office/residential premises related to the Present/Past Directors of Bharat Papers Limited, International Traders and Choudhary Industrial Projects Pvt. Ltd.
ED initiated investigation on the basis of FIR registered by CBI against Bharat Papers Limited, its directors — Rajinder Kumar Aggarwal, Parveen Kumar Aggarwal, Anil Kumar and Baljinder Kumar Aggarwal.
ED investigation revealed that that the company and its directors have perpetrated bank loan fraud amounting to Rs 200 crore. The loan was given to Bharat Papers by a consortium of banks with State Bank of India as the lead bank. The other banks include J&K Bank, PNB and Karur Vysya Bank.
ED investigation also revealed a criminal conspiracy on the part of directors of Bharat Papers for siphoning off loan amounts through bogus firms. The company was found to have been involved in secretly removing machine parts and selling the same using fake invoices without permission from consortium of banks.
During the course of searches, Indian currency of more than Rs.30 lakhs, around 600 grams gold, bank account, lockers and various incriminating documents in the form of property documents, hard disk, digital device, digital evidence and loose papers were found and frozen/seized.
Chandigarh-based Bharat Papers is undergoing corporate insolvency resolution process. The company, which is engaged in manufacturing of papers and paper products, was dragged to insolvency court by J&K Bank for defaulting on a payment of Rs 98 crore.
The company owes Rs 892 crore to its creditors. The CIRP is being overseen by Sumat Kumar Gupta, who is the resolution professional in the case.
Also See: NCLT approves Rs 301 crore resolution plan for Kolkata-based Sarga Hotel
