Enforcement Directorate (ED) Nagpur has taken action in 5 states in a bank fraud case worth Rs 4,037 crore. In Maharashtra, West Bengal, Bihar, Jharkhand and Andhra Pradesh, the agency has allocated Rs. 503.16 crore properties have been seized. These properties were seized on October 24. With this, the total seized assets have reached approximately Rs 727 crore.
The case relates to the investigation against Corporate Power Limited and their promoters, directors Manoj Jaiswal, Abhijit Jaiswal, Abhishek Jaiswal on charges of money laundering.
The attached assets include bank balances, mutual funds, shares, corporate power limited and properties held in the names of Manoj Kumar Jaiswal and his family members and some shell companies.
Corporate Power Limited's plant is in Jharkhand, 12 km from Chandwa, 30 km from Latehar and about 100 km from Ranchi.
Including interest Rs. Misappropriation of more than 11 thousand crores Union Bank of India filed a complaint in this matter. According to Union Bank, the accused manipulated the details of the project to get the loan and then diverted the bank's funds. This has resulted in a loss of Rs 4,037 crore to the bank, including interest of Rs 11,379 crore. Earlier in the case, the ED had conducted search operations at several places in Nagpur, Kolkata and Visakhapatnam and seized incriminating documents.
ED also seized the proceeds of crime. In which listed shares and securities, mutual funds, fixed deposits and Rs. 223.33 crore including bank balance. Apart from this, cash worth 55.85 lakhs was also seized.
In 2019, the company was declared a fraud by the bank Corporate Power, a special purpose vehicle setup, was established in 2006 by the Abhijit Group. Its purpose was to raise money for its power venture in Jharkhand. In 2019, Union Bank declared the accounts of Corporate Power Limited as fraudulent and filed a complaint with the CBI in 2022.
The ED investigation revealed that apart from CPL, other entities of the Abhijit group also committed such bank loan fraud. The group created a web of more than 250 shell entities that were used to collect and use the proceeds of crime.
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