Nagpur: The Enforcement Directorate (ED) in Nagpur has conducted extensive search operations from August 12 to August 14, 2024, in connection with a major bank fraud case involving M/s Corporate Power Limited and its promoters. The raids, carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, resulted in the seizure and freezing of assets totaling Rs 209.08 crore, including Rs 55.85 lakh in cash, bank balances, shares, securities, mutual funds, and fixed deposits.

The ED’s operation targeted 14 premises linked to M/s Corporate Power Limited, including the homes and offices of its promoters Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal. The case centers around an alleged Rs 4,037-crore bank loan fraud, with Corporate Power Ltd. identified as a Special Purpose Vehicle of the Abhijeet Group, which was established in 2006 for a power project in Jharkhand.

The investigation by the ED follows an FIR filed by the Central Bureau of Investigation (CBI) in December 2022, which accused M/s Corporate Power Limited and its promoters of criminal conspiracy, cheating, and forgery under various sections of the Indian Penal Code and the Prevention of Corruption Act. The FIR was based on a complaint from Union Bank of India and led to nationwide raids by the CBI in cities including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, and Vishakhapatnam.

According to the CBI’s findings, M/s Corporate Power Ltd. allegedly manipulated project cost statements to secure loans and misappropriated bank funds for personal gain, leading to the loans becoming non-performing assets (NPA) by September 30, 2013. The ED’s investigation further uncovered a complex network of shell companies, dummy directors, and charitable institutions used to launder money, with assets amassed through these illicit activities including shares, loans, advances, and properties.

In a significant development, the ED has obtained freezing orders on fixed deposits, demat accounts, and mutual funds totaling Rs 205 crore. Additionally, the agency seized Rs 55 lakh in cash and identified unencumbered immovable assets worth Rs 50 crore derived from the proceeds of the crime.