NEW DELHI – The Special Task Branch of the Central Bureau of Investigation (CBI) has registered a First Information Report (FIR) against M/s Aasra Foundation (Regd.) and several of its top officials for allegedly defrauding Canara Bank of approximately ₹18.53 crore. The case, filed on January 14, 2026, follows a formal complaint from the bank’s Circle Office in Chandigarh.
The Allegations
The FIR names the society, which operates Desh Bhagat University in Punjab, alongside its President Dr. Zora Singh, Vice President Sandeep Singh, and General Secretary Tajinder Kaur. The accused are charged under sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act for criminal conspiracy, cheating, and criminal misconduct.
According to the complaint, the society was granted credit facilities by a consortium of banks led by State Bank of India (SBI), with Canara Bank and Federal Bank as members. Between 2013 and 2018, Aasra Foundation allegedly diverted sanctioned funds for purposes other than those agreed upon in the loan terms.
Forensic Audit Reveals Financial Irregularities
A forensic audit conducted by M/S A. R & Company on behalf of the lead bank unearthed several glaring discrepancies:
- Fund Diversion: Approximately ₹7.00 crore of long-term funds were allegedly diverted during the 2015-16 fiscal year. While the society availed net term loans of ₹9.43 crore, only ₹2.43 crore was used for fixed assets.
- Revenue Inflation: During the FY 2014-15, the society reportedly stated a total revenue of ₹34.52 crore, whereas the actual figure was found to be only ₹27.27 crore.
- Hidden Bank Accounts: The borrower allegedly maintained parallel current accounts with several private banks—including HDFC, IDFC, PNB, Axis, and ICICI—without informing the consortium lenders.
- Non-Routing of Fees: The society failed to route student fee receivables through the lending banks, as required by the loan agreement.
- Unauthorized Contracts: Construction contracts were reportedly awarded to related parties, such as M/s Eiffel Infrastructure (P) Ltd., without formal contracts or the knowledge of the lenders.
Background and Current Status
The account was declared a Non-Performing Asset (NPA) on April 2, 2018. Following internal investigations and the forensic audit, Canara Bank officially reported the account as “Fraud” to the Reserve Bank of India (RBI) in October 2024.
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The bank has already initiated recovery actions under the SARFAESI Act and filed an application with the Debt Recovery Tribunal (DRT) in Chandigarh. While the borrower has challenged the fraud declaration in the Punjab and Haryana High Court, there are currently no stay orders on the investigative proceedings.
The CBI has entrusted the investigation to Inspector Bal Krishan Prasad. The agency is also looking into the potential role of “unknown public servants” who may have conspired with the society officials to facilitate the fraud.
