Jammu, Feb 2 (NationPress) The Enforcement Directorate (ED) announced on Monday that its Jammu Sub-Zonal Office has submitted a chargesheet in accordance with the Prevention of Money Laundering Act (PLA), 2002, to the Special Court (PMLA) against M/S Bharat Papers Limited and its directors.

According to a press release from the ED, "The Jammu Sub-Zonal Office has filed a Prosecution Complaint under the Prevention of Money Laundering Act (PLA), 2002 before the Hon'ble Special Court (PMLA) Jammu on 30.01.2026 against M/s Bharat Papers Limited (BPL) and its Directors/associated individuals including Anil Kumar, Parveen Kumar, Baljinder Kumar, Rajinder Kumar, and Anil Kashyap for the commission of the offence of money laundering."

The ED's investigation commenced following an FIR lodged by the CBI, ACB, Jammu, concerning a bank loan fraud amounting to nearly Rs 200 crore involving a consortium of banks led by the State Bank of India.

Findings from the ED revealed that the accused conspired to fraudulently secure bank loans and failed to utilize the funds for their intended purposes. Between 2008 and 2013, the loan capital was misappropriated through a systematic scheme, which included: transferring funds via fictitious entities, cash withdrawals, establishing and managing bank accounts outside the banking consortium, diverting receivables, extensive cash withdrawals from loan/current/cash credit accounts, and routing funds through paper entities/shell companies. Additionally, there were instances of covertly removing and selling machinery components from factory premises disguised through false invoices, and manipulating financial records with abnormal stock write-offs in the balance sheets for fiscal years 2010-11 to 2012-13.

"The investigation uncovered that the group utilized fraudulent entities such as M/s DEE ESS Engineers, M/s Triveni Engineers, M/s Arrow Scafftech Pvt Ltd, M/s R S Industries, M/s Arrow Enterprises, M/s Suka Mouldings Pvt Ltd, M/s Kahlon Auto Industries, and M/s Regent Fabrications to siphon and layer funds," the agency stated.

"Additionally, layering through paper entities/shell companies was identified, wherein funds were routed into M/s Indo Global Teno-Trade Limited (non-functional) and subsequently redirected into BPL as share capital/investments, effectively obscuring the audit trail," the ED noted in its statement.

Previously, the ED conducted searches at various locations across Jammu and Kashmir, Punjab, and Uttar Pradesh in this case. During these operations, incriminating documents and digital evidence were recovered and confiscated. Furthermore, cash exceeding Rs 30 lakh and around 600 grams of gold were seized, linked to the generation and concealment of Proceeds of Crime.

"During the investigation, one of the Directors of M/s Bharat Papers Limited, Anil Kumar, was detained under the provisions of the PMLA.

The ED's investigation also determined that the Proceeds of Crime were diverted and layered, ultimately used for acquiring or creating immovable properties.

As a result, the ED provisionally attached immovable assets valued at Rs 66.77 crore, which include: (i) industrial land in District Kathua along with its construction held in the name of M/s Bharat Papers Limited; (ii) two residential properties in Model Town, Ludhiana, registered under the names of Smt. Anjul Aggarwal, wife of Anil Kumar Aggarwal, as well as Rainder Kumar Aggaral and Parveen Kumar Aggarwal," the agency stated.

ED's investigation revealed non-cooperation from M/s BPL and its implicated Directors during the Corporate Insolvency Resolution Process (CIRP), including the failure to provide records as highlighted in the proceedings initiated before the NCLT Chandigarh bench.

"Further investigation is ongoing," concluded the ED press release.