Ahmedabad: ED provisionally attaches Jyoti Power Corporation’s assets worth Rs 15.01 cr

The ED had initiated its investigation into the matter based on the FIR registered by Central Bureau of Investigation (CBI), Economic Offences Branch (EOB), Mumbai, under the Indian Penal Code and the PMLA. The FIR was registered against JPCPL and its directors/ promotors Kamlesh Kataria and Nitesh Kataria and others. According to the FIR, the company has defaulted in repaying the loans to Bank of India (BOI) in a fraudulent manner leading to an undue loss to the tune of Rs 196.82 crore.

According to the statement, ED investigation revealed that JPCPL was availing “various loan facilities from BOI and other consortium banks and diverted the funds to multiple entities and to the personal accounts of the directors of the company”. “The borrower had allegedly defrauded the Bank of India to the tune of Rs 196.82 crore plus interest by diverting funds to multiple red flagged entities,” said the statement.

Fund diversion was being done in the name of labour payments; diversion to non-consortium banks and also disposing off the movable/ fixed assets without the bank’s knowledge, said the statement. Multiple properties have been purchased by the director and other shareholders using the bank funds. “These properties were later transferred to the family members without any consideration, just to conceal the Proceeds of Crime,” alleged the ED. Further investigation into the matter is underway, said the ED.