The Directorate of Enforcement (ED), Jalandhar Zonal Office, on 5 June 2025 searched six premises linked to Punjab Basmati Rice Limited (PBRL) and its directors in connection with a ₹350.84 crore bank fraud, recovering ₹8.50 lakh in cash and $8,600 in foreign currency under the Prevention of Money Laundering Act (PMLA), 2002. The Jalandhar-based company and its promoters allegedly defrauded a six-bank consortium led by Canara Bank.

The Fraud and How It Was Carried Out

Punjab Basmati Rice Limited and its directors, including Kulwinder Singh Makhni and others, allegedly diverted funds borrowed from the consortium banks by routing them through fictitious entities. According to the ED, the company showed sales of stock to non-existent debtors and used shell companies to offload inventory, with sale proceeds subsequently withdrawn in cash — a classic layering technique under money laundering frameworks.

The ED launched its investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI), New Delhi, against PBRL and others under various sections of the Indian Penal Code, 1860 and Section 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988. The alleged fraud caused direct losses to six public sector and consortium banks, with corresponding financial gains accruing to the promoters and directors, the agency said.

What Was Seized

During the search operations across six business and residential premises, the ED recovered and seized ₹8.50 lakh in cash, $8,600 in foreign currency, electronic devices, and various incriminating records. All seizures were made under the provisions of the PMLA, 2002. The recovered documents and devices are expected to form part of the agency's evidence chain in the ongoing money laundering probe.

Separate ED Action in Hyderabad: AP Liquor Transport Scam

In a separate operation, the ED Hyderabad on Thursday conducted searches at five premises in connection with the Andhra Pradesh Liquor Transport Scam. The search covered locations linked to Kessireddy Raja Shekhar Reddy, Dontireddy Vasudeva Reddy, Vijaya Narasimha Reddy, Vallu Sandeep, Karumuri Nageswara Rao, and Karumuri Sunil Kumar.

Investigators seized a luxury car, costly watches valued at ₹94.5 lakh, and incriminating documents — including suspicious joint venture agreements, records of unaccounted cash transactions, and property papers. Subsequently, Kessireddy Raja Shekhar Reddy and Dontireddy Vasudeva Reddy were arrested on Friday under the PMLA, 2002.

Broader Pattern of ED Enforcement

The twin actions reflect the ED's intensified focus on bank fraud and state-level procurement scams in the current enforcement cycle. The PBRL case is notable for the scale of alleged diversion — ₹350.84 crore across a multi-bank consortium — and the use of fictitious trade entities to obscure the money trail. This is consistent with a pattern the agency has flagged in several agri-commodity financing frauds in Punjab and Haryana over the past three years.

As investigations in both cases proceed, further arrests and asset attachments under the PMLA remain possible, according to officials.