Rs 4,037-crore bank loan fraud: ED raids 14 locations of Corporate Power in Maharashtra, assets worth Rs 205 crore seized
According to agency sources, the accused entity Corporate Power Ltd. is a Special Purpose Vehicle of Abhijeet Group, exclusively incorporated in the year 2006 for the Power Venture in Jharkhand.
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The central agency also identified unencumbered immovable assets worth Rs 50 crore derived from the proceeds of the crime, the ED stated.
The Enforcement Directorate (ED) on Tuesday carried out raids at 14 premises of M/s Corporate Power Limited company and its promoters Manoj Jayaswal, Abhijeet Jayaswal, Abhishek Jayaswal and others in connection with money laundering linked to Rs 4,037-crore alleged bank loan fraud.
The agency on Wednesday stated that it has seized/freezed FDs, demat accounts and mutual funds amounting to Rs 205 crore.
According to agency sources, the accused entity Corporate Power Ltd. is a Special Purpose Vehicle of Abhijeet Group, exclusively incorporated in the year 2006 for the Power Venture in Jharkhand.
The ED initiated a money laundering probe in the case based on an FIR registered by the CBI, New Delhi, in December 2022 under sections 120-B, 420 and 471 of IPC and 13(2), 13(1)(d) of Prevention of Corruption Act, 1988 against M/s Corporate Power Limited and its promoters/Directors.
The case was filed on the complaint of Union Bank of India. After FIR, the CBI also carried out raids in cities, including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, and Vishakhapatnam.
In the CBI’s complaint it was said that M/s Corporate Power Ltd. submitted manipulated project cost statements to avail loans and also diverted the bank funds for personal benefit.
In 2019, the bank declared the accounts as fraud and a complaint was lodged with the CBI in 2022. The period of crime is the financial year 2009 to September 30, 2013. In 2013, the loan turned non-performing assets (NSA) and the proceeds of the crime is Rs 4,037 crore, ED source stated.
The ED probe revealed that Abhijeet Group had created an intricate web of shell entities that were being used by the accused promoters for the layering, integration and utilisation of the proceeds of crime.
A network of charitable institutions were used for the purpose of money laundering of the proceeds of the crime. Dummy directors were employed by Abhijeet Group, usually the employees of the group and Dormant companies were found used as holding companies, the agency sources have said.
Assets were accumulated from proceeds of the crime in the form of movable assets such as listed and unlisted shares, loans and advances, mutual funds, FDs and immovable properties.
The agency has secured freezing orders from the authorities for placing restraint on FDs, demat accounts and mutual funds amounting to Rs 205 crore. During search Rs 55 lakh cash has also been seized.
The central agency also identified unencumbered immovable assets worth Rs 50 crore derived from the proceeds of the crime, the ED stated.
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