2 Years After Businessman Leaves India, Bank Alleges Rs 350 crore Fraud

CBI has registered a case in opposition to Manjit Singh Makhni and others (File)

New Delhi:

Manjit Singh Makhni, the Director of Punjab Basmati Rice Ltd, has skipped the nation after defrauding a Canara bank-led consortium of six banks to the tune of round Rs 350 crore, sources informed NDTV. Manjit Singh Makhni is now in Canada, the sources mentioned.

On the idea of a criticism by the financial institution, the Central Bureau of Investigation has registered a case in opposition to the Amritsar-based Punjab Basmati Rice Ltd and its Directors Manjit Singh Makhni, his son Kulwinder Singh Makhni, his daughter-in-law Jasmeet Kaur and unknown public servants for allegedly dishonest six banks.

In the First Information Report, the company gave a break-up of the dues: “Rs 175 crore with Canara Bank, 53 crore Andhra Bank, 44 crore with UBI, 25 crore with OBC, 14 crore with IDBI and 41 crore with UCO Bank.”

In its criticism, Canara financial institution mentioned the agency had availed credit score services from it since 2003. In 2012, they opted for a consortium association. The banks included had been Andhra Bank, IDBI, OBC, UBI and UCO Bank and the consortium was led by Canara financial institution.

“As the company defaulted in the repayment of principle debt and installments, the account was classified as NPA by Canara bank on 25.04.2018; Andhra Bank on 31.03.2018; OBC on 27.6.2018; IDBI on 31.3.2018; UBI on 30.4.2018 and UCO bank on 31.3.2018,”  the company’s FIR learn.

In March final 12 months, after making its personal investigations, the financial institution reported the alleged fraud to the Reserve Bank. While the financial institution was suggested to file the criticism with CBI in March final 12 months, it filed the criticism with the central company in June this 12 months.

The company additionally alleged that the accused had dedicated fraud by “disposing of the stock and primary security” with out the approval from the banks. They additionally didn’t repay their money owed from the proceeds.

Joint inspection by the financial institution discovered that rice inventory price Rs 291 crore, which is a part of the safety for the credit score facility, was eliminated and invoices weren’t submitted by the corporate to substantiate its claims of shares having being bought out. “These sales do not appear to be genuine,” the financial institution has mentioned in its criticism.

“After registration of the case, the agency is conducting searches at the premises of the accused, including the companies at Amristar,” the CBI mentioned in an announcement.

“The Canara bank, in its complaint, said as per their source information, Manjit Singh Makhni has left for Canada long before they filed their complaint, which was dated June 1. The agency will take necessary steps to bring back the accused,” sources within the CBI mentioned.

“Manjit Singh Makhni has left the country in the beginning of 2018. Once Canara bank got the information, passports of all three accused and Manjit Singh were revoked in September 2018,” sources informed NDTV.  

“It is a purely civil dispute and the company has already moved NCLT for initiation of insolvency process and the company is under liquidation.  I can’t comment anything about this criminal proceedings initiated by CBI,” Jyoti Sareen, counsel for Kulwinder Singh Makhni, informed NDTV.