Bank Fraud Case: ED files prosecution complaint against Jyoti Power Corporation

The ED said that its investigation found misuse of loan accounts and money laundering to the tune of Rs 297.07 crore considered “proceeds of crime.”

The ED said, “The company, its directors and others committed large scale bank fraud by diverting/siphoning of funds through various accounts of sister entities and of related persons, which were then withdrawn in cash. This was then used to purchase properties in the names of erstwhile directors, promoters and related entities. JPCPL also submitted forged letters of credit to banks, received funds in non-consortium accounts, falsified book accounts by showing fake unsecured creditors, thereby causing criminal breach of trust and causing pecuniary gains for themselves.”

In January, the ED said it provisionally attached immovable properties worth Rs 15.01 crore in the names of  JPCPL directors/partners and their family members under the Prevention of Money Laundering Act (PMLA) provisions.