ED Cracks Down on Major Bank Fraud: Rs. 503.16 Crore in Assets Provisional Attached in Corporate Power Limited Case
(Judicial Quest News Network)
In a significant development in the ongoing investigation into a high-profile bank fraud case, the Directorate of Enforcement (ED) has provisionally attached movable and immovable assets valued at ₹503.16 crore across multiple states, including Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh. This action, taken on October 24, 2024, targets M/s Corporate Power Limited and its key promoters—Manoj Jayaswal, Abhijeet Jayaswal, Abhishek Jayaswal, and others—under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The properties attached by the ED encompass a wide array of assets, including bank balances, mutual funds, shares, and numerous landed properties and buildings acquired through various shell companies. Notably, the assets are not only linked to M/s Corporate Power Limited but also to the family members of Manoj Kumar Jayaswal and his associates.
The ED’s investigation was initiated following an FIR registered by the Central Bureau of Investigation (CBI) against M/s Corporate Power Limited and its promoters. The allegations against them include criminal conspiracy, cheating, and forgery. The complainant, Union Bank of India, alleges that the accused submitted manipulated project cost statements to secure loans and subsequently diverted bank funds, resulting in a wrongful loss estimated at ₹4,037 crore (or ₹11,379 crore when including interest).
Prior to this asset attachment, the ED had executed search operations in various locations, including Nagpur, Kolkata, and Visakhapatnam. These operations yielded a trove of incriminating documents and led to the freezing of proceeds of crime amounting to ₹223.33 crore, which consisted of listed shares, securities, mutual funds, fixed deposits, and bank balances. Additionally, the ED seized cash amounting to ₹55.85 lakh during these raids.
As the investigation continues, the ED remains focused on unraveling the full extent of the financial irregularities and bringing those responsible to justice. This crackdown on fraudulent activities underscores the ED’s commitment to combating financial crimes and protecting the integrity of the banking system in India.
