ED Cracks Down on Jyoti Power Corporation in Rs 196.82 Crore Bank Fraud Case

The Enforcement Directorate conducted search operations against Jyoti Power Corporation Pvt. Ltd. and its Directors in a Rs 196.82 crore bank fraud case. The raids were carried out in Ahmedabad and Rajkot, revealing misuse of funds and siphoning off money through false documents and non-consortium bank accounts.

The Enforcement Directorate (ED) executed search operations under the Prevention of Money Laundering Act (PMLA) targeting Jyoti Power Corporation Pvt. Ltd. and its Directors, Kamlesh and Nitesh Mavjibhai Katariya, among others. The raids, conducted at eight locations in Ahmedabad and Rajkot on July 11, 2024, pertain to a bank fraud case involving Rs 196.82 crore.

In a statement, the ED's Ahmedabad Zonal Office confirmed the searches, which extended to the residential premises of JPCPL's directors and other associated individuals. The investigation was initiated based on an FIR registered by CBI, Bhopal, under various sections of the IPC, 1860 and the Prevention of Corruption Act, 1988. The allegations state that JPCPL and its promoters defrauded IDBI Bank and Bank of India by availing credit facilities and misusing funds worth Rs 196.82 crore. JPCPL also defaulted on a Rs 100 crore credit facility from IDBI Bank, leading to a separate FIR with CBI, Mumbai.

The probe revealed that JPCPL availed multiple credit facilities from Bank of India and IDBI Bank, part of which was siphoned off by the Directors. Instances of cash withdrawals through related entities and the issuance of Letters of Credit on forged documents were noted. Additionally, funds amounting to Rs 167.43 crore were diverted to accounts in non-consortium banks. The search operation led to the seizure of incriminating digital records, documents, and property details held by the Directors' kin.

Further investigation is underway.

(With inputs from agencies.)