Mumbai: The Enforcement Directorate (ED) has provisionally attached assets valued at Rs 503.16 crore in connection with an alleged bank fraud case involving Corporate Power Limited and its promoters, the Jayaswal family. The ED action, taken on October 24 under the Prevention of Money Laundering Act (PMLA), 2002, covers assets across Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh. The attached properties include bank balances, mutual funds, shares, and land, allegedly acquired in the name of shell companies associated with the firm’s promoters.
The attachment order targets the assets of M/s Corporate Power Limited and the company’s key promoters and directors—Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal—along with other associates. This action was initiated under the PMLA, 2002, following an investigation based on an FIR filed by the Central Bureau of Investigation (CBI)
The probe into M/s Corporate Power Limited began after Union Bank of India filed a complaint, accusing the Jayaswal family and other promoters and directors of orchestrating a scheme to siphon off bank funds.
According to the complaint, the company manipulated project cost statements to secure loans, subsequently diverting funds for unauthorized purposes. This alleged misappropriation has led to a significant financial loss for Union Bank of India, estimated at Rs 4,037 crore, which, including interest, totals approximately Rs 11,379 crore.
The ED’s probe has revealed that the proceeds of the alleged crime were funneled into investments in mutual funds, shares, real estate, and assets held by shell companies or close family members of the primary accused. The attachment order includes an extensive list of properties across multiple states, underscoring the scale and reach of the financial operations involved.
With this recent attachment, the total seized assets in the case now amount to approximately Rs 727 crore, Previously, the agency conducted search operations at several locations, including Nagpur, Kolkata, and Visakhapatnam, where they seized a range of incriminating documents. As part of these operations, assets valued at Rs 223.33 crore, consisting of listed shares, securities, mutual funds, fixed deposits, and bank balances, were frozen. Additionally, ED officials seized cash amounting to Rs. 55.85 lakh.marking a substantial escalation in the ED’s probe into alleged financial misconduct by Corporate Power Limited and its associates.
These developments have intensified scrutiny on M/s Corporate Power Limited and its affiliates, as authorities work to uncover the extent of the alleged fraudulent activities. The case is significant not only because of the sheer value of the assets involved but also due to the complex financial networks that have surfaced during the investigation.
The ED investigation is ongoing to trace additional assets and uncover the full extent of money laundering and fund diversion activities linked to M/s Corporate Power Limited. With substantial assets already attached and frozen, this case marks one of the larger financial fraud investigations in recent years.
