According to CBI’s FIR, Manjit Singh Makhni, former Director of Punjab Basmati Rice Ltd defrauded consortium of six banks led by Canara bank to the tune of Rs 350 crore. Manjit Singh Makhni has fled the country and is now in Canada. 

A businessman has left the country after defrauding a consortium of six banks led by Canara Bank. (Photo: Reuters)

HIGHLIGHTS

  • The bank filed a complaint in the matter 18 months after the fraud was discovered
  • This gave the businessman ample time to flee the country
  • Manjit Singh Makhni has defrauded Canara Bank to the tune of Rs 175 crore

A businessman has fled the country after defrauding Canara Bank to the tune of Rs 350 crore. The businessman managed to escape as the bank failed to file an FIR against him on time.

Canara Bank has filed a complaint stating that it was defrauded to the tune of Rs 350 with the Central Bank of Investigation (CBI), but it only did so 18 months after detecting the fraud, thus giving the accused enough time to flee the country.

According to CBI’s FIR, Manjit Singh Makhni, former Director of Punjab Basmati Rice Ltd defrauded consortium of six banks led by Canara bank to the tune of Rs 350 crore. Manjit Singh Makhni has fled the country and is now in Canada.

Punjab Basmati Rice Ltd and its Directors Manjit Singh Makhni, his son Kulwinder Singh Makhni, his daughter-in-law Jasmeet Kaur and unknown public servants defrauded the six banks — 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.

The FIR claims that the account was classified as a non-performing asset (NPA) by the banks in March – April 2018.

FIR NOT FILED ON TIME

According to banks own admission, “The fraud was reported to Reserve Bank of India (RBI) on March 11, 2019, and it was advised to lodge an FIR with the CBI on March 30, 2019.”

Still, the bank took over 15 months to approach the CBI to lodge the FIR against the accused.

“Through sources, the bank has come to know that Manjit Singh Makhni has left the country and moved to Canada,” the bank claimed.

The modus operandi used in the fraud by the accused was committed using fake invoices. The accused were also involved in disposing of the stock without approvals from the bank.

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