Pvt firm director among two booked for Rs 5-cr loan fraud

Ludhiana: The Division Number 5 police have booked the director of a private firm and his guarantor for allegedly cheating and defrauding a private finance company of Rs 5 crore. The accused are charged with using forged documents to secure the credit facility and subsequently defaulting on payments.The FIR has been lodged against Ajit Singh Chawla and Sumel Singh Chawla, both residents of Gurdev Nagar. The police action follows a formal complaint by Rajesh Gupta, the Managing Director of the affected financial firm.
According to the complainant, the accused availed a loan of Rs 5 crore from his company but later stopped paying the agreed-upon installments. Upon further verification of the paperwork submitted during the loan application process, the finance firm discovered that the documents were fake. Following this discovery, they approached the police for legal intervention.Investigating officer ASI Kuldeep Singh stated that the FIR was registered after a preliminary inquiry. The accused face multiple charges under the Bharatiya Nyaya Sanhita (BNS), including Section 316 (criminal breach of trust), 318(4) (cheating and dishonest inducement), 338 (forgery of valuable securities), 336(3) (forgery for the purpose of cheating), 340(2) (fraudulent use of forged documents), and 61 (criminal conspiracy).