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Rs 350 crore bank fraud: CBI files case against Punjab Basmati Rice owner who fled India two years ago

Canara Bank has filed a complaint with the CBI, alleging that Punjab Basmati Rice has cheated six banks to the tune of Rs 350 crore

twitter-logoBusinessToday.In | July 3, 2020 | Updated 19:40 IST
Rs 350 crore bank fraud: CBI files case against Punjab Basmati Rice owner who fled India two years ago
Canara Bank filed a complaint with the CBI on June 1

Over two years after Manjit Singh Makhni, the Director of Punjab Basmati Rice Ltd, fled the country, the Central Bureau of Investigation (CBI) has now registered a complaint against him for defrauding Canara Bank-led consortium of six banks of around Rs 350 crore. The rice businessman left India in the beginning of 2018 and is currently in Canada, as per media reports.

Canara Bank has filed a complaint with the CBI, alleging that Punjab Basmati Rice has cheated six banks to the tune of Rs 350 crore. The complaint was filed on 1 June by the General Manager of Canara Bank, Chandigarh against Punjab Basmati Rice and its directors Manjit Singh Makhni, his son Kulwinder Singh Makhni, his daughter-in-law Jasmeet Kaur and unknown public servants. As per reports, all the accused have left the country.

This complaint came over a year after the Reserve Bank of India (RBI) directed the consortium of banks to file a complaint with the central agency.

In its complaint, Canara Bank alleged that the accused had cheated the Canara Bank-led consortium comprising Andhra Bank, Union Bank of India, Oriental Bank of Commerce, IDBI Bank, UCO Bank to the tune of Rs 350.84 crore (including Rs 174.89 crore to the Canara Bank) by allegedly disposing off the stock and prime security without any prior intimation or approval from the consortium lender banks.

The Directors of Punjab Basmati Rice allegedly defrauded Rs 175 crore of Canara Bank, Rs 53 crore of Andhra Bank, Rs 44 crore of UBI, Rs 25 crore of OBC, Rs 14 crore of IDBI and Rs 41 crore of UCO Bank.

Based on the complaint, the agency carried out searches at the premises of the company office and accused directors Kulwinder Singh Makhani, Jasmeet Kaur and Manjeet Singh Makhani in Punjab's Amritsar.

By Chitranjan Kumar with PTI inputs

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