The Enforcement Directorate (ED) has attached assets worth ₹503.16 crore across multiple states in connection with a major bank fraud case. The assets, located in Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh, are linked to a ₹4,037 crore alleged bank fraud involving Corporate Power Limited (CPL) and its top executives.
Background of the Investigation
The ED’s action is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, against Corporate Power Limited and its promoters and directors, including Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal. The inquiry follows a complaint from Union Bank of India, which accused CPL and its associates of manipulating loan documents and diverting funds.
Details of Attached Properties
The assets attached by the ED include various types of properties, such as:
- Bank Balances
- Mutual Funds
- Shares
- Landed Properties and Buildings
These properties were allegedly acquired using shell companies tied to CPL and relatives of the accused. The ED’s attachment order was issued on October 24, marking a significant development in the case.
Union Bank of India’s Allegations
According to the complaint from Union Bank of India, CPL and its key officials allegedly submitted falsified project cost statements to obtain loans and later misused the funds. This manipulation reportedly caused a direct loss of ₹4,037 crore to the bank, which totals ₹11,379 crore when accounting for interest.
Prior Actions by ED in the Case
Earlier in the investigation, the ED conducted searches in several cities, including Nagpur, Kolkata, and Visakhapatnam. During these operations, the ED:
- Seized Incriminating Documents
- Frozen Assets Worth ₹223.33 Crore: Including listed shares, mutual funds, fixed deposits, and bank balances
- Seized Cash Amounting to ₹55.85 Lakh
Current Status and Next Steps
The ED continues to investigate the case, aiming to uncover additional assets and evidence related to the alleged bank fraud. This ongoing inquiry will assess further leads to support potential legal action against CPL and its associated individuals.
