Nagpur, India: The Enforcement Directorate (ED) in Nagpur conducted a series of raids from August 12 to August 14, 2024, as part of an investigation into a significant bank fraud case involving M/s Corporate Power Limited and its promoters. These operations, carried out under the Prevention of Money Laundering Act (PMLA), 2002, led to the seizure and freezing of assets worth Rs 209.08 crore. The assets include Rs 55.85 lakh in cash, along with bank balances, shares, securities, mutual funds, and fixed deposits.

The ED’s raids targeted 14 locations linked to M/s Corporate Power Limited, including the residences and offices of its promoters Manoj Jaiaswal, Abhijeet Jaiaswal, and Abhishek Jaiaswal. The case involves an alleged Rs 4,037-crore bank loan fraud, with Corporate Power Ltd. acting as a Special Purpose Vehicle for the Abhijeet Group, established in 2006 for a power project in Jharkhand.

This ED investigation follows a December 2022 FIR filed by the Central Bureau of Investigation (CBI), which accused M/s Corporate Power Limited and its promoters of criminal conspiracy, cheating, and forgery under various sections of the Indian Penal Code and the Prevention of Corruption Act. The FIR, based on a complaint from Union Bank of India, led to nationwide CBI raids in cities including Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, and Vishakhapatnam.

According to the CBI, M/s Corporate Power Ltd. allegedly inflated project costs to secure loans and misappropriated bank funds for personal use, resulting in the loans becoming non-performing assets (NPA) by September 30, 2013. The ED’s investigation further revealed a complex network of shell companies, dummy directors, and charitable institutions used to launder money. The assets acquired through these illicit activities include shares, loans, advances, and properties.

In a significant move, the ED obtained freezing orders on fixed deposits, demat accounts, and mutual funds totaling Rs 205 crore. Additionally, the agency seized Rs 55 lakh in cash and identified unencumbered immovable assets worth Rs 50 crore, all linked to the proceeds of the crime.