shot-button
Subscription Subscription
Home > News > India News > Article > ED arrests Punjab AAP MLA in bank fraud linked money laundering case

ED arrests Punjab AAP MLA in bank fraud-linked money laundering case

Updated on: 06 November,2023 09:57 PM IST  |  New Delhi
PTI |

Punjab AAP MLA Jaswant Singh Gajjan Majra was on Monday arrested by the Enforcement Directorate in connection with a money laundering investigation

ED arrests Punjab AAP MLA in bank fraud-linked money laundering case

ED logo. File Pic

Punjab AAP MLA Jaswant Singh Gajjan Majra was on Monday arrested by the Enforcement Directorate in connection with a money laundering investigation linked to a bank fraud case, official sources said.


The legislator was taken into custody under provisions of the Prevention of Money Laundering Act (PMLA) after he was detained by agency officials from a public meeting he was holding in Malerkotla, they said.


The sources alleged that Gajjan Majra, a legislator from the Amargarh assembly constituency, had skipped multiple summons issued to him in the past and hence, was detained by the officials and then arrested after questioning.


The Aam Aadmi Party's Punjab spokesperson Malvinder Singh Kang charged that the way Gajjan Majra was picked up from a public meeting by the ED shows the BJP's politics of defaming the party.

He said the MLA has been facing a case since before he joined AAP.

The central agency raided the MLA and some others in September last year as part of this PMLA investigation that stems from a March 2022 FIR filed by the CBI (Anti-Corruption Branch, Chandigarh).

The CBI FIR was registered against Tara Corporation Limited (TCL), renamed Malaudh Agro Limited on September 24, 2018, its directors Jaswant Singh (Gajjan Majra), Balwant Singh, Kulwant Singh, Tejinder Singh, their associates and other sister concerns in Ludhiana, Malerkotla, Khanna, Payal and Dhuri.

The ED said it had seized mobile phones, hard drives and Indian currency worth Rs 32 lakh from multiple premises that were searched.

It said the Bank of India's Model Town branch in Ludhiana had sanctioned a loan on cash credit limits aggregating Rs 35 crore to the company as against hypothecation of stocks and book debts on 23.09.2011 under sole banking arrangement.

"The account was also sanctioned an ad hoc limit of Rs 6 crore in February 2014 which is yet to be repaid by the company," the agency said.

TCL's account was declared a Non-Performing Asset on March 31, 2014, the ED had said.

It added that the aggregate loan outstanding is Rs 76 crore and 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 or 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 had also been re-appointed as director of the company on May 25, 2016, it said.

"On the basis of information available, an 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 added.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!

Do you have a fixed sleep-wake cycle?

Register for FREE
to continue reading !

This is not a paywall.
However, your registration helps us understand your preferences better and enables us to provide insightful and credible journalism for all our readers.

Mid-Day Web Stories

Mid-Day Web Stories

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK