The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has provisionally attached immovable properties worth Rs. 15.01 crore (present market value Rs. 20 crore) in the names of directors, partners, and their family members of M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the law enforcement agency announced on Monday.
The ED initiated the investigation based on an FIR registered by the CBI, EOB, Mumbai, under the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, against M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) and its directors/promoters Kamlesh Kataria and Nitesh Kataria, among others. The FIR alleges that M/s JPCPL defaulted on loan repayments to the Bank of India (BOI) in a fraudulent manner, causing an undue loss amounting to Rs. 196.82 crore.
The ED investigation revealed that JPCPL was availing various loan facilities from BOI and other consortium banks and diverted the funds to various entities, including the personal accounts of the directors of the company. The borrower defrauded Bank of India to the tune of Rs. 196.82 crore plus interest by diverting funds to several red-flagged entities. The diversion was done under the guise of labor payments, diversion to non-consortium banks, and the disposal of movable/fixed assets without the bank’s knowledge. Various properties were purchased by the directors and shareholders with bank funds, which were later transferred to their family members without consideration, in an attempt to conceal the proceeds of crime. Further investigation is ongoing.