ED seizes cash after raids on Punjab AAP MLA, others in bank fraud case

ED said it seized Rs 32 lakh cash, some mobile phones and hard drives after it raided the premises of AAP MLA in Punjab Jaswant Singh Gajjan Majra and some others

The ED on Friday said it seized Rs 32 lakh cash, some mobile phones and hard drives after it raided the premises of AAP MLA in Punjab Jaswant Singh Gajjan Majra and some others as part of a money laundering probe linked to an alleged bank loan fraud.

The federal investigative agency said in a statement that the searches were carried out at the business and residential premises of "accused persons and their associates" including Tara Corporation Limited (renamed as Malaudh Agro Limited on September 24, 2018), its directors Jaswant Singh, Balwant Singh, Kulwant Singh, Tejinder Singh, their associates and other sister concerns at Ludhiana, Malerkotla, Khanna, Payal and Dhuri.

Jaswant Singh Gajjan Majra is a legislator from the Amargarh assembly constituency. The Aam Aadmi Party (AAP) Punjab unit had on Thursday called the raids a "political vendetta".

The ED said "incriminating pieces of evidence were seized related to "bogus firms through which turnover of Tara Corporation Limited was inflated and loan funds were diverted/siphoned off by the accused".

"Further, mobile phones, hard drives and Indian currency worth Rs 32 lakh were also seized from the searched premises," it said.

The money laundering case, it said, stems from a March FIR filed by the CBI (anti-corruption bureau, Chandigarh) against the accused.

It said the 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 on September 23, 2011 under sole banking arrangement.

"The account was also sanctioned an adhoc limit of Rs 6.00 crore in February 2014, which is yet to be repaid by the company," it said.

The Account of TCL was declared as NPA (non performing asset) on March 31, 2014, the ED said.

It said the aggregate loan outstanding is Rs 76 crore and Jaswant Singh, Balwant Singh, Kulwant Singh and Tejinder Singh were directors and guarantors in the loan account of Tara Corporation Limited.

"When a fresh RoC (Registrar of Companies) search was initiated by the bank in May 2016, it was observed that there was a drastic change in the directors of the company (without intimation to/prior permission of bank) and Kirpal Singh Tiwana, Harish Kumar and Lakhbir Singh had been appointed as directors of TCL and Principal person Balwant Singh had resigned from the directorship," the ED alleged.

Later on, Balwant Singh had also been re-appointed as director of the company from May 25, 2016, it said.

"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 agency said.