ED attaches assets worth Rs 503.16 crore in massive Rs 4,037 crore bank fraud case

The Enforcement Directorate has attached assets valued at Rs 503.16 crore across multiple states in a Rs 4,037 crore bank fraud case involving Corporate Power Limited and its promoters. The ED’s action follows an ongoing investigation into alleged financial misconduct.

The Enforcement Directorate (ED) has attached assets worth Rs 503.16 crore across five states, including Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh, in connection with an alleged bank fraud case valued at Rs 4,037 crore. According to ANI reports, this case centres on Corporate Power Limited, along with its promoters and directors Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal, and is being pursued under the Prevention of Money Laundering Act (PMLA), 2002.

The attached assets comprise both movable and immovable properties such as bank balances, mutual funds, shares, land, and buildings. These properties were acquired through various shell companies linked to Corporate Power Limited as well as members of the Jayaswal family, according to the ED. The agency took action to attach these assets on 24 October, as reported by ANI.

The investigation was initiated following an FIR filed by the Central Bureau of Investigation (CBI), based on a complaint by Union Bank of India. The bank alleged that Corporate Power Limited and its executives had engaged in criminal conspiracy, cheating, and forgery. It was claimed that the accused submitted falsified project cost statements to secure loans, then misappropriated the funds, resulting in an alleged wrongful loss of Rs 4,037 crore to the bank, which totals to Rs 11,379 crore when including interest, as reported by ANI.

As part of its ongoing probe, the ED previously conducted search operations in Nagpur, Kolkata, and Visakhapatnam. These operations uncovered several incriminating documents and led to the freezing of assets worth Rs 223.33 crore, including listed shares, securities, mutual funds, fixed deposits, and bank balances. Additionally, Rs 55.85 lakh in cash was seized, ANI noted.

This latest action reflects the ED's broader efforts to investigate and curtail financial misconduct involving large corporations and influential individuals. The agency’s actions, guided by the provisions of the PMLA, continue to underscore the government’s focus on tackling financial fraud and reinforcing the integrity of banking systems across the country.

According to ANI reports, the ED remains committed to examining the full extent of the alleged fraud and pursuing additional legal action as needed to secure any remaining proceeds connected to the case.

(With inputs from ANI)

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!