According to official sources, the Enforcement Directorate raided locations in Punjab, Uttar Pradesh, and Jammu and Kashmir on Wednesday in connection with an alleged ₹ 200 crore bank loan fraud case involving Bharat Papers Ltd. (BPL).
In accordance with the Prevention of Money Laundering Act (PMLA), the central agency is searching at least nine locations in these regions.
Founded in September 2006, BPL is a subsidiary of Bharat Box Factory Industries Limited (BBFIL), a Jammu and Ludhiana-based paper board packaging company.
The main accusations made against the company are that its directors, working with a group of banks led by the State Bank of India, committed a bank loan fraud totaling approximately ₹ 200 crore.
J&K Bank, PNB, and Karur Vysya Bank are among the other banks.
It is claimed that the defendants “siphoned off” money to fictitious companies and sister concerns, and they sold foreign and indigenous machinery without the lender banks’ consent by creating “fake” invoices.
Rajinder Kumar, Parveen Kumar, Baljinder Singh, Anil Kumar, and Anil Kashyap are the directors of Bharat Papers Limited.