The law enforcement agency said in a statement that the searches were carried out at the business and residential premises of "accused persons and their associates" including Tara Corporation Limited (renamed as Malaudh Agro Limited on September 24, 2018), its directors Jaswant Singh, Balwant Singh, Kulwant Singh, Tejinder Singh, their associates and other sister concerns at Ludhiana, Malerkotla, Khanna, Payal and Dhuri.
The ED said, "incriminating pieces of evidence were seized related to bogus firms through which turnover of Tara Corporation Limited was inflated and loan funds were diverted/siphoned off by the accused".
"Further, mobile phones, hard drives and Indian currency worth ₹32 lakh were also seized from the searched premises," it said.
Jaswant Singh Gajjan Majra is an AAP MLA from the Amargarh Assembly constituency. Reacting to the ED raids, the Punjab unit of the Aam Aadmi Party (AAP) said they were a "political vendetta".
The money laundering case was filed after the FIR which was filed by the Central Bureau of Investigation (CBI) against the accused.
The FIR said that the Bank of India (Model Town branch, Ludhiana) had sanctioned a loan on cash credit limits aggregating ₹35 crore as against hypothecation of stocks and book-debts on September 23, 2011, under sole banking arrangement.
The FIR read: "The account was also sanctioned an adhoc limit of ₹6.00 crore in February 2014, which is yet to be repaid by the company." The ACL account was declared as a non-performing asset on March 31, 2014, the ED said.
The FIR said the aggregate loan outstanding is ₹76 crore. It said MLA Jaswant Singh, Balwant Singh, Kulwant Singh and Tejinder Singh were directors and guarantors in the loan account of Tara Corporation Limited.
"When a fresh RoC (Registrar of Companies) search was initiated by the bank in May 2016, it was observed that there was a drastic change in the directors of the company (without intimation to/prior permission of bank) and Kirpal Singh Tiwana, Harish Kumar and Lakhbir Singh had been appointed as directors of TCL and Principal person Balwant Singh had resigned from the directorship," the ED alleged.
Later, Balwant Singh was also re-appointed as director of the company from May 25, 2016, the ED said.
"On the basis of information available, investigation was initiated against the above said persons and their associates in order to ascertain the money laundering activities undertaken by them for laundering their proceeds of crime," the agency said.
(With agency inputs)
