₹200 Crore Loan Fraud: ED Files Prosecution Against Bharat Payments Ltd

February 4, 2026

Jammu: The Enforcement Directorate (ED), Jammu Sub-Zonal Office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, against M/s Bharat Payments Limited (BPL) and its directors and other associated persons. The complaint was filed in the Special Court (PMLA), Jammu, on January 30, 2026.

The case relates to alleged irregularities and fraud in a bank loan of approximately ₹200 crore sanctioned by a consortium of banks led by the State Bank of India (SBI).

Allegations of misuse of loan funds between 2008 and 2013

The ED investigation has revealed that the loan funds sanctioned to Bharat Payments Limited were not used for the intended purposes. Between 2008 and 2013, this money was allegedly laundered through shell companies and related entities and used for personal gain.

According to the investigating agency, the proceeds of crime were concealed through fake documents, complex financial transactions, and layered transactions.

Shell Companies, Abnormal Write-Offs, and Suspicious Transactions

The ED stated that several shell and paper companies were created to launder the funds. Furthermore, abnormal write-offs and suspicious transactions were also detected during certain financial years—particularly from 2010-11 to 2012-13.

The investigation also alleges that the company manipulated accounts and submitted false financial statements to mislead banks, resulting in significant losses to public sector banks.

Assets Seized, Investigation Underway

During the investigation, the ED has identified and provisionally attached movable and immovable properties acquired from the proceeds of crime. According to the agency, more than 66 percent of the total loan amount was diverted through related entities.

The charge sheet details the role of the company, its directors, and other accused. The ED clarified that further investigation is ongoing in the case and that other beneficiaries and properties are being identified.