The Special Judicial Magistrate Court of CBI in Mohali sentenced two businessmen to two years of rigorous imprisonment for defrauding a bank of ₹16 crore by availing credit facilities based on fake financial statements.
Conviction and Sentencing
The court, presided over by Special Judicial Magistrate Megha Dhaliwal, convicted Tajinder Pal Singh, a rice mill owner from Nakodar, and Jatinder Singh, a resident of Batala, for their involvement in the fraud. Both were sentenced to two years in prison for their actions.
Background of the Case
The case dates back to September 7, 2013, when Tajinder Pal Singh, a partner in Jai Sharda Rice Mill, requested the Bank of India’s Nakodar Branch to enhance his credit facility to ₹16 crore. He submitted exaggerated financial statements and tax audit reports for the 2012-13 fiscal year, which led the bank to approve the enhanced credit limit.
However, during the investigation, it was discovered that the financial statements submitted to the bank differed from those filed with the Income Tax Department for the same period. The Central Bureau of Investigation (CBI) found that Tajinder had misrepresented the figures to secure the credit facility.
Siphoning Off Funds
Further investigation revealed that Tajinder Pal Singh, in collaboration with Jatinder Singh, who was a partner in Amar Rice and General Mill, siphoned off ₹3.43 crore from the loan proceeds between March 24 and March 25, 2015. Jatinder Singh facilitated the fraud by issuing fake invoices and goods receipts from his firm, aiding in the misappropriation of funds.
Charges and Legal Proceedings
The CBI charged both accused under multiple sections of the Indian Penal Code (IPC), including:
- Section 120-B (Criminal conspiracy)
- Section 420 (Cheating)
- Section 468 (Forgery for cheating)
- Section 471 (Using a forged document as genuine)
The charges were framed in September 2021, leading to their eventual conviction and sentencing in 2024.
