Agency alleges company’s promoters’ actions led to loss of R4037cr to Union Bank of India
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The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth Rs 67.79 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a money-laundering case against Corporate Power Ltd and its promoters, Manoj Jayaswal, Abhijeet Jayaswal, Abhishek Jayaswal, and others.
According to the agency, the attached assets include bank accounts, land, buildings, flats, and commercial spaces spread across Maharashtra, Kolkata, Delhi, and Andhra Pradesh. These assets were allegedly acquired using proceeds of crime in the names of Jayaswal family members, shell companies controlled by them, and their close associate Santosh Jain, who is accused of helping launder the illicit funds.
The ED’s probe stems from an FIR registered by the Central Bureau of Investigation (CBI) against Corporate Power Ltd, its promoters, and others for criminal conspiracy, cheating, and forgery. The case was initiated based on a complaint by Union Bank of India, which alleged that the company — promoted as a special purpose vehicle by the Abhijeet Group to establish a 1080 MW coal-based power project in Jharkhand — availed huge credit facilities using falsified statements.
Investigators found that the promoters allegedly diverted and siphoned off the loan funds, resulting in the company’s loan accounts turning into non-performing assets (NPA) in 2013-14, causing a loss of Rs 4037 crore (Rs 11,379 crore including interest) to the bank.
The ED stated that the accused used over 800 shell companies and 5000 bank accounts to launder and circulate the diverted funds. Previous search operations in Nagpur, Kolkata, and Visakhapatnam had led to the seizure of incriminating documents, digital records, cash, and the freezing of shares, mutual funds, and fixed deposits worth Rs 503.16 crore.
With the latest action, the total value of attached, seized, and frozen assets in the case has now reached Rs 571 crore, officials said, adding that further investigation is underway.
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