A special CBI-cum-PMLA court on Monday summoned Aam Aadmi Party’s (AAP) Amargarh MLA Jaswant Singh Gajjanmajra and other co-accused on April 1 in connection with the ₹40.92 crore bank fraud case.
The Enforcement Directorate (ED) had on November 6, 2023, arrested Gajjanmajra for alleged money laundering. Booked under section 19 of the Prevention of Money Laundering Act, 2002, he is in judicial custody and is confined at the Patiala Central Jail.
The court of Manjot Kaur, special judge, PMLA, summoned Jaswant Singh, his brother Balwant Singh, Kulwant Singh and nephew Tejinder Singh besides the companies involved in the case to face trial for the offences under section 3 read with section 70 of PMLA, 2002, punishable under section 4 of PMLA, 2022.
ED had submitted that M/s Tara Corporation Limited (hereinafter referred to as M/s TCL) availed loans worth ₹35 crore and ₹6 crore vide loan sanction order dated September 23, 2011, and February 26, 2014, respectively from Bank of India, Model Town Branch, Ludhiana. Jaswant, Balwant, Kulwant and Tejinder were the firm’s directors at the time.
According to the information, the loans were availed fraudulently and the firm defaulted on them. A case was on March 28, 2022, registered by CBI, ACB, Chandigarh, on the complaint of the Bank of India deputy general manager (Recovery).
{{/usCountry}}According to the information, the loans were availed fraudulently and the firm defaulted on them. A case was on March 28, 2022, registered by CBI, ACB, Chandigarh, on the complaint of the Bank of India deputy general manager (Recovery).
{{/usCountry}}ED submitted that the loan amounts were not utilised for the intended purpose and were layered by routing through accounts of various associated entities/companies and other bogus entities by the accused through a web of transactions and ultimately the diverted and siphoned off. M/s TCL entered into fraudulent business transactions with entities that were controlled by the directors.
The probe agency added that there were circular transactions from the accounts of M/s TCL with four bogus entities, manipulating records to show inflated revenues and profits and thereby entitle the firm for loans beyond genuine numbers.
“The accused have committed the offence of money laundering within the meaning of section 3 of Prevention of Money Laundering Act, 2002, which is punishable under section 4 of the PMLA,” ED added.
Pertinently CBI is yet to file the challan in the case.