CBI BOOKS BUNTY WALIA IN BANK FRAUD CASE, WALIA DENIES CHARGES | 29 May, 2023
By
KOMAL NAHTA
The CBI has registered a case against film producer and events organiser Bunty Walia alias Jaspreet Singh Walia, his brother, Guneet Singh Walia, their production house, G.S. Entertainment Pvt. Ltd., its CA and others, in an alleged bank fraud which is estimated to have caused IDBI a loss of Rs. 15 crore. The CBI last week carried out searches at the premises of GSEPL, its directors (the Walia brothers), and CA Stany Saldanha. The bank has alleged that GSEPL was sanctioned a foreign currency loan of US $2.35 million (Rs. 10 crore) and a term loan of Rs. 4.95 crore in June 2008 on personal guarantees of Walia and others under the film financing scheme for his Lamhaa, starring Sanjay Dutt. The film was to have been released in 2009 but got delayed. The account was declared a non-performing asset on September 30, 2009.
Subsequently, the IDBI appointed PVR as the sole distributor for the worldwide release of the film subject to the execution of a suitable tripartite agreement on June 2, 2010 between GSEPL, PVR and IDBI. As per the agreement, PVR was to spend Rs. 8 crore on the film’s promotion and post-production expenses. However, PVR allegedly failed to honour its part of the commitment as its revenues from the film totalled Rs. 7.41 crore as against the expenditure of Rs. 8.25 crore.
A forensic audit report revealed that GSEPL had submitted a “fraudulent utilisation certificate”, diverted the bank’s funds and fudged the account books. The IDBI then accused GSEPL of cheating, falsification of records, misappropriation of public money,
misrepresentation and criminal breach of trust, which resulted in the loan being declared fraudulent. The CBI has named Bunty Walia, GSEPL and others under Indian Penal Code sections related to criminal conspiracy, cheating and forgery as well as provisions of the Prevention of Corruption Act.
Bunty Walia has denied the allegations of cheating etc. According to him, they had suffered a loss in the film and despite sharing all the details, the bank officials kept on asking him to “settle the issue”. He added that there was a collusion between a bank official and their appointed auditor to declare him as wilful defaulter, so that they could approach the CBI. Added Walia, “The auditor gave a fabricated report against me.”
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