Illegal sand mining Firm recorded Rs 4.74 lakh loss in 2019-20, ED recovered Rs 10 cr from its directors

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During its recent raids in an illegal sand mining case, the Enforcement Directorate recovered Rs 10 crore in cash from directors of a private firm – Providers Overseas Consultants. But the firm’s financial records for the year 2019-20, as accessed by The Indian Express, show its total revenue from operations to be around Rs 18.38 lakh with a total loss of Rs 4.74 lakh after meeting its expenses.

The company also showed total indebtedness of Rs 3.88 lakh. Providers Overseas Consultants had filed its last balance sheet with the Ministry of Corporate Affairs on February 15, 2021 for the year 2019-20, while the balance sheet for FY 2020-21 is yet to be filed.

ED, in its recent raids based on a 2018 FIR registered over illegal sand mining at Rahon Police station of Nawanshahr, had recovered Rs 10 crore cash from the directors of this company, which includes CM Charanjit Singh Channi’s nephew Bhupinder Singh Honey, and Sandeep Kumar. Kudratdeep Singh is the third director of the company whose name was there in the sand mining FIR.

A senior officer in the ED, while underlining the Rs 10 crore recovery, said that though the company is yet to file its balance sheet of this year (2020-21) in the coming month, “it is unlikely that company would record a huge jump in turnover from its previous figure of Rs 18 lakh given the pandemic and its primary operations linked to educational consultancy”.

The company has come in the crosshairs of ED’s illegal mining probe as one of its director, Kudratdeep Singh, was named in the 2018 FIR.


The company since its inception has only filed two balance sheets for the year 2018-19 and 2019-20 with Ministry of Corporate Affairs, under the category of company limited by shares/Indian non-government company. This firm was registered on October 25, 2018 (almost 8 months after the registration the sand mining case).

Education and immigration consulting is the main function of the company while Kudratdeep Singh, Bhupinder Singh and Sandeep Kumar are the Directors and key managerial personnel of the company.

Registered at Sector 44-D of Chandigarh, all the three partners are the shareholders of 33.33 per cent each in the company and own 2,000 shares each the value of which is Rs 10 per share.

According to the balance sheet as on March 31, 2020 (the copy of which is available with The Indian Express) signed by both Bhupinder Singh Honey and Kudratdeep Singh, the company had shown revenue or commission from operations Rs 18,37,777 and total expenses of Rs 23,12,024. Also Rs 4,74,247 was shown as loss and Rs 1,02,540 as deferred liability.

The company spent Rs 12,34,072 on the salary and Rs 45,599 on staff welfare, which comes to total 12,79,671 and apart from this Rs 10,32, 184 was shown as “other expenses” which included Rs 2,40,500 rent, Rs 37,451 as student insurance expenses, Rs 94,945 as advertisement expenses, Rs 80,048 for electricity, Rs 81,771 as vehicle run maintenance, Rs 79,623 as office expenses, Rs 65,270 as travelling expenses and so on.

The company has also shown long term liabilities as ‘unsecured loan’ of Rs 3,88,477 and short-term loan and advances of Rs 8,500. To recover its losses, the company had taken loan and advances of Rs 5.26 lakh from its clients as per this balance sheet.

In the financial year 2018-19, the company had only shown expense of Rs 22,954. The balance sheet shows Rs 5,968 paid as income tax. The company’s share capital amount was Rs 5 lakh, which means that it could invest up to Rs 5 lakh and its paid-up capital was Rs 60,000.


It was on March 7, 2018, that Rahon police filed an FIR following a tweet by then CM Amarinder Singh that pointed out with pictures illegal mining on the banks of Sutlej in Phillaur and Rahon. Surprise checks followed and an FIR was filed against 26 people linked to six mines. Kudratdeep was named, but never arrested. He only appeared before cops after securing bail, and later an inquiry was marked in his case and later he was declared ‘innocent’ by police.

The ED had conducted its probe now based on the FIR filed by the police in 2018.

The ED said that during the course of its searches, various incriminating documents related to sand mining business, property transactions were found along with mobile phones, Indian currency more than Rs 10 crore, gold worth above Rs 21 lakhs and a Rolex watch worth Rs 12 lakhs.

Those searched by the Directorate included Kudratdeep Singh, Bhupinder Singh Honey (Channi’s nephew), Sandeep Kumar, Manpreet Singh, Sunil Kumar Joshi, Jagveer Inder Singh, Randeep Singh at different locations in Mohali, Ludhiana, Rupnagar, Fatehgarh Sahib and Pathankot.

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