Jalandhar, June 13: The Enforcement Directorate (ED) has launched significant actions in connection with an alleged bank fraud case amounting to ₹350.84 crore involving Punjab Basmati Rice Limited and its promoters. This operation took place on June 5, 2026, at the ED’s Jalandhar zonal office.
The agency conducted searches at six business and residential premises linked to the company and its directors. According to the ED, Punjab Basmati Rice Limited and its promoters are accused of defrauding a consortium of six banks led by Canara Bank, resulting in substantial financial losses for the institutions involved.
The investigation was initiated based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in New Delhi. The FIR includes charges against the company, its directors, and other accused individuals under various sections of the Indian Penal Code and the Prevention of Corruption Act.
The inquiry revealed that the promoters and directors of the company misused funds obtained from the bank, transferring them elsewhere for personal gain. Allegations suggest that the company falsely claimed to sell goods to shell companies, presenting these entities as debtors. Additionally, fictitious sales were reported using some shell companies, with the proceeds withdrawn in cash.
According to the ED, this entire process involved the wrongful use of public sector bank funds. During the searches, the agency seized several crucial documents and electronic devices for further investigation.
The ED also recovered ₹8.50 lakh in Indian currency and $8,600 in cash during the raids. The agency stated that the seized documents and electronic records are under examination, which may reveal more significant information regarding the case.
The investigation continues under the Prevention of Money Laundering Act (PMLA), 2002, with further legal actions to be taken based on the findings of the inquiry.
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