The Directorate of Enforcement (ED), Kolkata Zonal Office-I, conducted search operations at 12 premises across West Bengal on September 3, 2026, under the Prevention of Money Laundering Act (PMLA), 2002, as part of an investigation into the Kohinoor Power Private Limited (KPPL) bank fraud case involving a default of more than ₹280 crore.
The ED investigation was started based on a complaint filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court, Calcutta, in Criminal Case No. 11/2024, concerning the affairs of Kohinoor Power Private Limited and others. The Ministry of Corporate Affairs (MCA) had ordered an investigation into the company’s affairs after the Insolvency and Bankruptcy Board of India (IBBI) forwarded a list of companies in which Resolution Professionals had filed applications before the National Company Law Tribunal (NCLT) regarding suspected avoidance transactions.
According to the ED investigation, KPPL and its directors allegedly carried out fraudulent activities, including providing false information, hiding important facts, manipulating books of accounts and diverting loan funds. The ED said these activities allegedly led the consortium banks to sanction and disburse financial facilities. The company later went into liquidation under the Insolvency and Bankruptcy Code (IBC), and only around ₹7 crore could be recovered, resulting in a 97.5% haircut for the banks.
The liquidator had also filed applications under Sections 66 and 67 of the IBC regarding alleged avoidance transactions. According to the ED, funds were allegedly transferred to related entities through bogus transactions and were later used to purchase properties in the names of the promoters, their family members and entities owned or controlled by them.
The ED’s investigation also found dozens of immovable properties in and around Kolkata that were allegedly acquired from the proceeds of crime. The promoters were allegedly earning around ₹26 lakh per month in rental income from these properties.
The search operations further revealed, according to the ED, that the company’s promoters, Vijay Bothra and Prashant Bothra, were controlling more than 100 shell entities. These entities were allegedly being used to siphon and launder proceeds of crime generated from the bank fraud. The ED also found that large amounts of money had allegedly been invested abroad in the names of relatives and dummy directors.
During the searches, the ED froze bank accounts belonging to more than 150 shell entities and individuals, along with securities and other financial investments, including shares, mutual funds and debt securities. The total value of the bank balances and financial assets frozen during the operations was approximately ₹64 crore.
The ED also seized digital evidence, company records, financial documents, property deeds and other documents during the searches. These materials are being examined to trace the proceeds of crime and identify further assets allegedly acquired from those funds. The ED said that further investigation is under progress.
