2 Years After Businessman Leaves India, Banks Allege Rs 350 crore Fraud


CBI has registered a case towards 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 instructed 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 towards the Amritsar-based Punjab Basmati Rice Ltd and its Administrators Manjit Singh Makhni, his son Kulwinder Singh Makhni, his daughter-in-law Jasmeet Kaur and unknown public servants for allegedly dishonest six banks.

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

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 have been Andhra Financial institution, IDBI, OBC, UBI and UCO Financial institution and the consortium was led by Canara financial institution.

“As the corporate defaulted within the reimbursement of precept debt and installments, the account was categorized as NPA by Canara financial institution on 25.04.2018; Andhra Financial institution on 31.03.2018; OBC on 27.6.2018; IDBI on 31.three.2018; UBI on 30.four.2018 and UCO financial institution on 31.three.2018,”  the company’s FIR learn.

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

The company additionally alleged that the accused had dedicated fraud by “disposing of the inventory and first safety” with out the approval from the banks. Additionally they 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 gross sales don’t seem like real,” the financial institution has mentioned in its criticism.

“After registration of the case, the company is conducting searches on the premises of the accused, together with the businesses at Amristar,” the CBI mentioned in an announcement.

“The Canara financial institution, in its criticism, mentioned as per their supply data, Manjit Singh Makhni has left for Canada lengthy earlier than they filed their criticism, which was dated June 1. The company will take obligatory steps to convey again the accused,” sources within the CBI mentioned.

“Manjit Singh Makhni has left the nation to start with of 2018. As soon as Canara financial institution acquired the data, passports of all three accused and Manjit Singh have been revoked in September 2018,” sources instructed NDTV.  

“It’s a purely civil dispute and the corporate has already moved NCLT for initiation of insolvency course of and the corporate is beneath liquidation.  I am unable to remark something about this prison proceedings initiated by CBI,” Jyoti Sareen, counsel for Kulwinder Singh Makhni, instructed NDTV.

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