Enforcement Directorate Raids Premises in Connection with Alleged Bank Loan Fraud
The Enforcement Directorate (ED) recently conducted raids at 14 premises of M/s Corporate Power Limited and individuals associated with the company, including its promoters Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal, in connection with an alleged money laundering scheme linked to a Rs 4,037-crore bank loan fraud.
The operation, which took place on Tuesday, is expected to continue on Wednesday, as authorities delve deeper into the intricacies of the case. Notably, Corporate Power Ltd. is identified as a Special Purpose Vehicle of the Abhijeet Group, established in 2006 specifically for a power venture in Jharkhand.
This probe by the ED stems from an FIR filed by the Central Bureau of Investigation (CBI) in December 2022, citing sections 120-B, 420, and 471 of the Indian Penal Code, as well as sections 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988 against M/s Corporate Power Limited and its promoters/directors. The case was initiated based on a complaint from the Union Bank of India, which also spurred nationwide raids by the CBI in cities such as Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, and Vishakhapatnam.
According to the CBI’s complaint, M/s Corporate Power Ltd. allegedly submitted manipulated project cost statements to obtain loans and misappropriated bank funds for personal gain. The illicit activities are said to have taken place from the financial year 2009 to September 30, 2013, resulting in the loan turning into non-performing assets (NPA) and an estimated proceeds of crime totaling Rs 4,037 crore.
During their investigation, the ED discovered that the Abhijeet Group had established a complex network of shell entities to facilitate the layering, integration, and utilization of the illicit funds. Additionally, charitable institutions were exploited for money laundering purposes, while dummy directors and dormant companies were employed for maintaining the intricate scheme further. The assets amassed from these illicit activities encompass various forms, including movable assets such as listed and unlisted shares, loans, advances, mutual funds, fixed deposits, and immovable properties.
In a significant development, the agency has obtained freezing orders to restrain fixed deposits, demat accounts, and mutual funds totaling Rs 205 crore. Furthermore, authorities seized Rs 55 lakh in cash during the search operations, and unencumbered immovable assets valued at Rs 50 crore, derived from the proceeds of the crime, have been identified.
This ongoing probe serves as a stark reminder of the complexities and implications associated with financial crimes, shedding light on the efforts undertaken by regulatory agencies to combat such illicit activities and hold the perpetrators accountable.
