ED Searches 10 Mumbai–Vadodara Premises in Bilpower Loan Fraud Case; Seizes ₹12.20 Crore Jewellery, Cash
PMLA probe into alleged diversion of SBI loan proceeds; accounts and lockers frozen
(By Syed Ali Taher Abedi)
Mumbai, August 27: The Directorate of Enforcement (ED), Mumbai Zonal Office, has conducted search operations at seven residential and business premises and three bank lockers in Mumbai and Vadodara in connection with an alleged ₹160.55-crore loan fraud involving M/s Bilpower Limited.
The searches were carried out on August 25, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated its investigation on the basis of an FIR registered by the CBI’s Economic Offences-I Branch, Delhi, following a complaint lodged by the State Bank of India. The CBI subsequently filed a chargesheet on September 30, 2024, against Bilpower Limited, its directors and certain associate companies.
According to the investigation, Bilpower Limited allegedly availed various loan facilities from the SBI and thereafter diverted the loan proceeds and manipulated its books of account, resulting in an alleged loss of ₹160.55 crore to the bank.
The company, engaged in the manufacture of transformer laminations and cores, was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Naresh Kumar Chaudhary. Since 2005, it had banking arrangements with the SBI, including Cash Credit, Working Capital Term Loan, Funded Interest Term Loan, Corporate Loan and non-fund-based facilities such as Bank Guarantees, Letters of Credit and Foreign Currency Exposure.
The loan account was declared a Non-Performing Asset (NPA) on April 18, 2012, with a principal outstanding of ₹160.55 crore.
Alleged shell-company transactions
The ED’s investigation has allegedly revealed that Bilpower Limited entered into transactions with certain shell or bogus entities for the diversion and round-tripping of bank funds.
The agency alleged that Letters of Credit were devolved in favour of such entities on the basis of forged documents, which were submitted and used as genuine. The funds were subsequently diverted to various entities allegedly controlled by members of the Chaudhary family or their associates.
During the searches, the ED seized approximately ₹43.90 lakh in cash and jewellery valued at approximately ₹12.20 crore.
The agency also froze two bank accounts containing approximately ₹27 lakh under Section 17(1A) of the PMLA, 2002. Three bank lockers were also frozen during the operation.
Property records, ledgers and digital devices recovered
The searches further resulted in the identification and recovery of documents relating to various assets, including immovable properties, land and machinery.
The ED also recovered and seized other incriminating documents, books of account, ledgers and digital devices. Further investigation in the matter is underway.
