The Central Bureau of Investigation (CBI) on Saturday conducted searches at the properties of Aam Aadmi Party's (AAP) Punjab MLA Jaswant Singh in connection with a ₹40.92 crore bank fraud case. In a statement, the federal agency said that as many as three locations and people associated with the accused, including directors, guarantors and private firms, were raided in an ongoing investigation of the case.
Nearly 88 foreign currency notes, cash of ₹16.57 lakh (approximately), some property documents, many bank accounts and other incriminating documents were recovered during the searches, the agency said.
Jaswant is among seven people and companies named as accused in the case. Balwant Singh, Kulwant Singh, Tejinder Singh, M/s Tara Health Foods Ltd through its directors, M/s Tara Corporation Ltd (renamed as Malaudh Agro Ltd), and some unknown public servants/private persons are other accused named in the bank fraud case.
The CBI statement said that the probe began after a case was filed on a complaint from Bank of India in Ludhiana against a private firm based in Gaunspura, Tehsil-Malerkotla (Punjab) and others, including directors, guarantors of the company, another private firm and some unknown public servants.
“It was alleged that the said private firm was engaged in trading of DOC Rice Bran, DOC Mustard Cake, Cottonseed Cake, Maize, Bajra and other food grains. The borrower firm was sanctioned loans at 4 intervals from 2011-2014 by the Bank,” the statement added.
{{/usCountry}}“It was alleged that the said private firm was engaged in trading of DOC Rice Bran, DOC Mustard Cake, Cottonseed Cake, Maize, Bajra and other food grains. The borrower firm was sanctioned loans at 4 intervals from 2011-2014 by the Bank,” the statement added.
{{/usCountry}}The complaint further alleged that through its directors, the firm had concealed “hypothecated stock and diverted book debts with malafide and dishonest intention so that the same were not made available to the creditor bank for inspection and for effecting recovery as secured creditor”.
The operation caused the bank to incur a loss of ₹40.02 crore (approximately).
Another allegation is that the loan availed by the accused has not been utilised for the purpose for which it was taken.
The AAP's MLA from Punjab's Amargarh constituency Jaswant, similar to the other accused people, served as the director and guarantor in the private firm.