ED Cracks Down on Rs 4,037 Crore Bank Fraud Scheme with Major Asset Seizure

The Enforcement Directorate has attached assets worth Rs 503.16 crore in multiple Indian states in a Rs 4,037 crore bank fraud case involving Corporate Power Limited. Key figures Manoj Jayaswal and others are under investigation for criminal activities, including cheating and forgery, under the Prevention of Money Laundering Act.

The Enforcement Directorate (ED) has taken significant action in a Rs 4,037 crore bank fraud case by attaching movable and immovable assets valued at Rs 503.16 crore across Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh. This crackdown targets Corporate Power Limited and the company's key figures, including Manoj Jayaswal, under the Prevention of Money Laundering Act (PMLA), 2002.

These frozen assets encompass bank balances, mutual funds, shares, and real estate, owned by various shell entities and the implicated family members of Manoj Kumar Jayaswal. The ED's actions followed a First Information Report filed by the Central Bureau of Investigation, which accused the company and its promoters of engaging in criminal conspiracy, forgery, and cheating.

The Union Bank of India, the complainant, alleges that falsified project cost statements were used to obtain loans, subsequently diverting funds and resulting in a Rs 4,037 crore loss—ballooning to Rs 11,379 crore with interest. Prior investigations led to searches in Nagpur, Kolkata, and Visakhapatnam, uncovering incriminating evidence and freezing Rs 223.33 crore in listed shares, securities, and cash.

(With inputs from agencies.)