Massive Money Laundering Probe Targets Jyoti Power Corporation: ED Raids 8 Locations in Ahmedabad & Rajkot
Ahmedabad, July, 13, 2024
(Judicial Quest News Network)
During the search operation conducted by the Directorate of Enforcement (ED) at various locations, several incriminating digital records and documents were recovered and seized. These pieces of evidence shed light on the alleged bank fraud committed by M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) and its Directors, Kamlesh Mavjibhai Katariya and Nitesh Mavjibhai Katariya. Here are some key findings:
- Misuse of Funds: The investigation revealed that JPCPL availed credit facilities from Bank of India and IDBI Bank for its business operations. However, a portion of these funds was siphoned off by the company’s Directors.
- Cash Withdrawals: Instances of cash withdrawals through related entities were also discovered during the search. These transactions raised suspicions about the diversion of funds.
- Forged Documents: The release of Letter of Credits to various companies was based on forged and fabricated documents. This fraudulent activity involved collusion with other firms and their controllers.
- Non-Consortium Bank Accounts: The Directors of JPCPL opened bank accounts with non-consortium banks. Approximately Rs. 167.43 Crore, receivable from different debtors/clients, was diverted to these accounts outside the consortium.
- Defaulted Repayment: JPCPL defaulted in repaying approximately Rs. 100 Crore (approx) availed as credit facility from IDBI Bank. A separate FIR was registered with CBI, Mumbai, regarding this default.
These findings form a crucial part of the ongoing investigation into the alleged bank fraud. The ED aims to establish the extent of financial irregularities and hold those responsible accountable.
