Bank Fraud

Rs 196.82 crore Fraud in Bank of India


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The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has provisionally attached immovable properties worth ₹15.01 crore (current market value ₹20 crore) under the Prevention of Money Laundering Act (PMLA), 2002. The properties are owned by directors, partners, and family members of M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL).

Fraudulent Loan Default Case

The ED began its investigation following an FIR filed by the Central Bureau of Investigation (CBI), Mumbai Economic Offences Branch. The FIR, registered under the Indian Penal Code (IPC) and the Prevention of Corruption Act, accused JPCPL and its directors, Kamlesh Kataria and Nitesh Kataria, of defaulting on loans from Bank of India (BOI) fraudulently. The alleged fraud caused a loss of ₹196.82 crore to the bank.

Findings of the Investigation

According to the ED, JPCPL secured various loan facilities from BOI and a consortium of other banks. These funds were diverted to multiple entities and personal accounts of the company’s directors. Key findings include:

  1. Misuse of Funds: Funds were falsely used under the guise of labor payments and diverted to non-consortium banks.
  2. Asset Disposal: Movable and fixed assets were sold without the banks’ knowledge.
  3. Proceeds of Crime: Properties purchased with bank funds were transferred to family members without any compensation to conceal the proceeds of the crime.

Current Action

The ED has attached properties belonging to the company’s directors and their families to recover part of the defrauded amount. The investigation revealed deliberate efforts to hide the proceeds of the fraud, including transferring assets to red-flagged entities.

Next Steps

The ED has stated that further investigations into the case are underway to uncover additional details and take necessary action. This development highlights the agency’s commitment to curbing financial crimes and ensuring accountability for fraudulent activities.

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