Jammu: The Directorate of Enforcement (ED), Jammu Sub-Zonal Office, has filed a Prosecution Complaint under the Prevention of Money Laundering Act (PMLA), 2002 before the Special Court (PMLA), Jammu, against M/s Bharat Papers Limited (BPL) and its directors and associated persons in connection with an alleged ₹200-crore bank loan fraud involving a consortium of banks led by the State Bank of India (SBI).
The prosecution complaint was filed on January 30, 2026, naming Anil Kumar, Parveen Kumar, Baljinder Kumar, Rajinder Kumar and Anil Kashyap for the offence of money laundering. According to the ED, the accused were involved in a criminal conspiracy to fraudulently avail bank loans and subsequently divert and siphon off the funds, causing substantial losses to the lending banks.
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The ED initiated its investigation based on an FIR registered by the CBI, Anti-Corruption Branch (ACB), Jammu, which had probed irregularities in the sanction and utilisation of bank loans granted to Bharat Papers Limited. The loans were sanctioned by a consortium of banks for specific business purposes, but were allegedly not used for the intended objectives.
ED’s probe revealed that during the period 2008 to 2013, the accused persons diverted the loan funds through a structured and layered modus operandi designed to conceal the origin and end-use of the proceeds. Investigators found that instead of deploying the funds for legitimate business activities, the amounts were siphoned off through multiple channels.
According to the agency, the diversion included routing of funds through bogus entities, substantial cash withdrawals, and the opening and operation of bank accounts outside the consortium banking arrangement, into which receivables were diverted. Large-scale cash withdrawals were allegedly made from loan, current and cash credit accounts to obscure the money trail.
The ED further stated that funds were routed through paper entities and shell companies, which had little or no genuine business activity. In addition, machinery parts were stealthily removed from factory premises and sold, with the transactions camouflaged through bogus invoices to make them appear legitimate. The investigation also uncovered manipulation of books of accounts, including abnormal stock write-offs reflected in the balance sheets for financial years 2010–11 to 2012–13, aimed at masking the diversion of funds.
During the course of the probe, the ED identified several bogus concerns and entities allegedly operated or used by the accused group to siphon and layer the proceeds of crime. These included 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 Kahion Auto Industries and M/s Regent Fabrications, among others.
Further layering was detected through paper entities wherein funds were routed into M/s Indo Global Tecno Trade Limited, a non-functional company, and thereafter channelled back into Bharat Papers Limited in the form of share capital and investments, thereby camouflaging the audit trail and attempting to project the proceeds of crime as legitimate funds.
Earlier, the ED conducted search operations at multiple locations across Jammu and Kashmir, Punjab and Uttar Pradesh in connection with the case. During these searches, the agency recovered and seized incriminating documents and digital evidence substantiating the allegations of diversion and laundering of funds. The searches also led to the seizure of cash exceeding ₹30 lakh and approximately 600 grams of gold, which the ED said were linked to the generation and concealment of proceeds of crime.
In the course of the investigation, Anil Kumar, one of the directors of Bharat Papers Limited, was also arrested under the provisions of PMLA, the agency said.
The ED’s probe further revealed that the proceeds of crime were utilised for the acquisition and creation of immovable properties. Accordingly, the agency provisionally attached immovable properties valued at ₹66.77 crore under the provisions of PMLA. These include industrial land in Kathua district along with construction thereon, held in the name of Bharat Papers Limited, as well as two residential properties in Model Town, Ludhiana, held in the names of Anju Aggarwal, Rajinder Kumar Aggarwal and Parveen Kumar Aggarwal.
The agency also noted that Bharat Papers Limited, as a corporate debtor, is currently undergoing proceedings under the Insolvency and Bankruptcy Code (IBC) before the National Company Law Tribunal (NCLT), Chandigarh Bench. The ED alleged that the company and its accused directors failed to cooperate during the Corporate Insolvency Resolution Process (CIRP), including non-handing over of records, as reflected in proceedings before the NCLT.
The ED said further investigation in the matter is ongoing, and additional findings may follow as the probe progresses.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
