ED attaches over 500 crore assets across Bengal, 4 other states in multi-thousand crore scam

The Enforcement Directorate (ED) has attached assets valued at ₹503.16 crore in connection with a major bank fraud case involving Corporate Power Limited. The assets, which include both movable and immovable properties located across Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh, were seized on October 24, according to an ED statement released on Monday. This action is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002.

The ED's case against Corporate Power Limited includes accusations against the company’s promoters and directors, Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal, among others. The probe focuses on suspected manipulation of project cost statements, diversion of loan funds, and other financial malpractices. The Union Bank of India, the primary complainant, alleges that the company inflated project costs to secure substantial loans and then diverted those funds, resulting in an estimated loss of ₹4,037 crore (₹11,379 crore including interest).

The attached assets encompass bank balances, mutual funds, shares, land, and buildings. According to ED findings, these properties were acquired in the name of multiple shell companies, in addition to those held directly by Corporate Power Limited and family members of Manoj Kumar Jayaswal and other key individuals involved in the case.

The ED’s investigation follows a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) against Corporate Power Limited. The FIR accuses the company and its directors of criminal conspiracy, cheating, and forgery. This bank fraud case highlights a complex network of alleged financial manipulations aimed at deceiving financial institutions to obtain substantial funding.

Earlier in the investigation, ED conducted searches in locations such as Nagpur, Kolkata, and Visakhapatnam, resulting in the seizure of various incriminating documents. The agency also froze ₹223.33 crore worth of listed shares, mutual funds, fixed deposits, and other bank balances. Additionally, cash worth ₹55.85 lakh was confiscated during the search operations.