ED Conducts Raids in West Bengal Linked to ₹280 Crore Bank Fraud Case

Kolkata, September 7 (Daily Kiran) : The Enforcement Directorate (ED) has launched a series of raids across Kolkata and its surrounding areas in connection with an alleged bank fraud case exceeding ₹280 crores. The operation targeted 12 locations linked to Kohinoor Power Private Limited and its associates, under the Prevention of Money Laundering Act (PMLA), 2002.This investigation was initiated following a complaint filed by the Serious Fraud Investigation Office (SFIO) in Kolkata's special court. The case centers around the financial activities of Kohinoor Power and its directors. The Ministry of Corporate Affairs (MCA) had previously ordered an inquiry into the company’s operations. This decision came after the Insolvency and Bankruptcy Board of India (IBBI) submitted a list of companies to the ministry, highlighting those facing suspicious transactions as reported by resolution professionals in the National Company Law Tribunal (NCLT).The ED's investigation revealed that the company and its directors allegedly engaged in misleading practices, such as providing false information, concealing crucial facts, manipulating accounts, and misappropriating loan funds. These actions reportedly deceived banks into granting financial benefits. The company eventually entered liquidation proceedings under the Insolvency and Bankruptcy Code (IBC), during which banks were able to recover only about ₹7 crores, incurring a loss of approximately 97.5%.The agency uncovered multiple properties in and around Kolkata that were allegedly purchased with funds obtained through these fraudulent activities. It is claimed that the promoters of the company were earning around ₹26 lakhs monthly from these properties. Additionally, the investigation indicated that promoters Vijay Bothra and Prashant Bothra controlled over 100 shell companies. These entities were allegedly used to launder money obtained from bank fraud and to disguise its origins.Significant amounts of money have also been reportedly invested abroad in the names of relatives and purported dummy directors. During the raids, the ED froze the bank accounts of more than 150 shell companies and individuals, along with halting shares, mutual funds, and other financial investments. The total value of the frozen bank deposits and financial assets is estimated at ₹64 crores. The agency has seized digital evidence, company records, financial documents, and property-related papers during the search operations.The ED is currently analyzing these documents to trace the illicit funds and the properties acquired with them.