Panjaab Transport placed into receivership
Panjaab Transport, an Oakville, Ont.-based fleet running 117 trucks, has been placed in receivership.
RBC says it’s owed more than $12 million and had “numerous and consistent concerns regarding the manner in which the debtors were conducting their business operations and managing their lending arrangements…Further, when provided, the debtors’ reporting has been suspect, inconsistent and unverifiable.”
msi Spergel was appointed interim receiver in September, and full receiver in October. It filed an interim report that revealed numerous red flags about the company’s operations.
Panjaab Transport is owned by Sandeep (Sunny) Singh, who is also the sole director of the two real estate properties in Oakville from which the trucking company operates.
In its interim report, Spergel notes funds have been diverted through a company called Palm Transport, whose sole director is Birinder Kaur, who the Spergel “understands to be Sunny’s wife.”
Deposits into the debtor’s RBC accounts dropped sharply in the months of August and September, and Singh was found to have opened TD accounts around Aug. 12.
“The interim receiver is concerned that this information was withheld by the debtors and noted its concern to the counsel for the debtors in a telephone conversation. The interim receiver has yet to receive an explanation from Sunny as to why he chose to withhold the existence of the TD Bank accounts,” the interim receiver’s report reads.
It flagged $2.1 million in unaccounted for receivables and noted it appears Panjaab has been funding its cash needs by “stretching or not making payments to” creditors and leasing companies.
The receiver also uncovered concerns stemming from a Canada Revenue Agency (CRA) audit of HST claims. Panjaab filed 2024 HST returns amounting to $4.22 million, however, a CRA audit rejected $2.27 million. The audit uncovered claims related to a number of suppliers that “were not engaged in commercial activity.”
It also slapped Panjaab with a $602,025 fine for “gross negligence.”
Many of the companies found not to be engaged in commercial activity are registered to individuals related to Singh, who denies the charges and is appealing.
One of those related companies is Jimmy Trucklines, allegedly registered by a sister-in-law. That company has been placing RSLA (Repair & Storage Lien Act) liens against Panjaab equipment. The liens were made after the appointment of the interim receiver.
“The registration of RSLA liens against vehicles in order to stop creditors from enforcing their rights is improper,” Spergel said in its report. “Further, registering RSLA liens on assets that are paid off and free and clear of interest of any leasing company has the effect of eroding RBC’s security as those assets would fall within the General Security Agreement of RBC.”
Spergel also noted the debtors provided it with little information about its ongoing operations, making it difficult for the receiver to comment on the viability of the business.
“Based on the financial information available as of the date of this report, it appears that the debtors are not generating sufficient cash from the operations of their businesses as payments to many creditors including RBC, leasing companies, CRA (for source deductions), trade creditors (including fuel suppliers, owner operators/incorporated drivers) and employees appear to be delayed and/or are in default,” the interim receiver’s report said.
“Based on the available information, the Interim Receiver is concerned about the debtors’ ability to continue operating the businesses, which is the subject matter of the security provided to RBC. The findings by CRA with respect to the HST audit are very concerning and further casts an element of doubt on the information being produced by the debtors.”
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Another example of the out of control truck business operations which are money laundering frauds. The government must press charges on these actors. Diversion of funds is outright fraud!
I am sick and tired to see how they are playing us all in transportation industry by hiring students with work permits and hauling across country or USA;
Below market value loads ..
…doing illegal interstate runs and getting Americans mad.. when this Government with step it and do something for people that truly building this country
In the industry for over 25 years I still remember when loadlink was connected by modem lol
Usual Suspects !!!
These people think that they can take advantage of a capitalistic society by racing to the bottom. They rate cut constantly and work for load pimps that don’t have a cent invested. Once they realize the “business plan” doesn’t work, they go into bankruptcy. Ite been this way for 40 years. It won’t change. So to the customers who have to pay more, TOO BAD. To the suppliers, investors and banks involved TOO BAD. Should have done better due diligence.
Well this is to show you that this was not well manged company all the money was gone into the owners pockets . The banks shouldn’t exceed money above 500,000 dollars and if they do must have at the least 4 solid cosigner. With borrowed past and solid credit so the bank ceo should be fired .
All I can say Only in Canada
Both lenders and OEM’s are getting what they deserve for nurturing these type of relationships and catering to these “new age” carriers.
All while legacy carriers who have stood the test of time are being questioned about maintaining covenants during this down turn.
These people are eating our lunch. Banks and truck/trailer builders need to smarten up and get on the right side of the fence.
So if people are trying to hide money, and move it from one organization to another and they have been audited and fined more than a half million dollars…then how is that not fraud and embezzlement??…the true definition of embezzlement is “misappropriation of funds”!…so let’s put them all in jail and anyone affiliated?, let’s do the right thing and follow the law!, this is canada not India or Pakistan . If they are not charged it erodes the legal system and then we lose our country.