Jalandhar, June 13 -- The Enforcement Directorate (ED) seized cash amounting to Rs.8.5 lakh and $8,600 (approximately Rs.8.2 lakh) during searches conducted on the premises of Punjab Basmati Rice Limited (PBRL) and its directors in Amritsar district. The raids were part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA) concerning an alleged bank fraud of Rs.350.84 crore. According to an official statement issued by the ED, searches were conducted at six business and residential premises linked to PBRL, its directors and promoters, including Kulwinder Singh Makhni and others. Besides cash and foreign currency, the agency recovered several incriminating documents and electronic devices during the operation, according to the ED release. The money laundering investigation stems from a case registered by the Central Bureau of Investigation (CBI) in 2020 against the company's owners and directors, including Manjit Singh Makhni, his wife Jasmeet Kaur, their son Kulwinder Singh Makhni, and unidentified public servants. The FIR was registered on the recommendation of the Reserve Bank of India (RBI). The ED alleged that PBRL defrauded a consortium of six banks led by Canara Bank, causing a loss of Rs.350.84 crore. Investigators found that the company, through its directors and promoters, allegedly diverted bank funds and generated wrongful gains by manipulating stock sales and financial records. According to the agency, PBRL allegedly showed the sale of rice stock to fictitious entities and reflected these entities as debtors in its books of accounts. Investigators further alleged that several shell companies were used to facilitate stock sales, after which the proceeds were withdrawn in cash. The complaint against the company was originally filed by Canara Bank's Chandigarh circle office on June 1, 2020. The bank accused the company and its directors of disposing of rice stock, which had been pledged as primary security against credit facilities, without obtaining prior approval or informing the lending banks. This allegedly resulted in a wrongful loss of Rs.350.84 crore to the consortium. The complaint was supported by forensic audit reports, which reportedly revealed large-scale diversion of funds and serious operational irregularities within the company. Investigators also found suspicious transactions involving the sale of rice stock to two Ludhiana-based traders operating from the same address, raising concerns over the genuineness of the transactions. Further scrutiny revealed that directors Jasmeet Kaur and Manjit Singh Makhni resigned from the company on January 8, 2019, allegedly in violation of the terms and conditions attached to the sanctioned credit facilities. Based on the bank's complaint, the CBI registered an FIR on June 29, 2020, under various sections of the Indian Penal Code, including cheating, forgery, use of forged documents, and criminal conspiracy, along with relevant provisions of the Prevention of Corruption Act. The ED said the investigation is ongoing and further examination of the seized records and digital evidence is underway to trace the proceeds of crime and identify the beneficiaries of the alleged fraud....