ED: ED seizes ₹503 crore in major bank fraud case involving Jayaswal Group

ED seizes assets worth ₹503cr in bank fraud case

Patna: The Enforcement Directorate (ED) movable and immovable properties seized at various places in Bihar, Jharkhand, West Bengal, Maharashtra and Andhra Pradesh, worth Rs 503.16 crore in an alleged Rs 4,037 crore bank fraud case, the agency said here on Monday.
The assets are related to an ongoing investigation Business Power Limited (CPL) and their promoters and directors Manoj JayaswalAbhijeet Jayaswal, Abhishek Jayaswal and others under the provisions of the Money Laundering Prevention Act (PMLA), 2002.
The attached properties include bank money, mutual funds, shares, various land properties and buildings acquired in the names of various shell companies, excluding those of the CPL and the family members of Manoj Kumar Jayaswal and others. These assets were seized on October 24.
The ED initiated investigations on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against the CPL, its promoters, directors and others for alleged offenses of criminal conspiracy, cheating and forgery.
According to the complainant, Union Bank of India, the suspects allegedly submitted manipulated project cost statements to avail loans and also diverted bank funds, causing an illegal loss of Rs 4,037 crore, which after adding interest, amounted to Rs 11,379 crore.
Earlier in the case, the ED conducted searches at various locations in Nagpur, Kolkata and Visakhapatnam and seized several incriminating documents. It also froze the proceeds of the alleged crime, comprising Rs 223.33 crore worth of listed shares and securities, mutual funds, fixed deposits and bank balances, and seized cash worth Rs 55.85 lakh. “Further investigation in the case is underway,” the ED said on Monday.
In December 2022, the CBI, acting on a complaint by Union Bank of India, had registered an FIR against Kolkata-based Corporate Power Ltd and its directors in connection with a bank fraud of Rs 4,037 crore.
Those named in the CBI’s FIR include Abhijeet Group Chairman Manoj Jayaswal and Managing Director Abhishek Jayaswal. The FIR alleged that the said borrower had submitted doctored project cost statements and misappropriated bank funds.

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