Daijiworld Media Network - New Delhi
Mumbai, Aug 27: The Enforcement Directorate (ED) has seized jewellery worth approximately Rs 12.20 crore and cash amounting to around Rs 43.90 lakh during searches conducted in connection with an alleged Rs 160.55-crore bank loan fraud involving Bilpower Limited.
The searches were carried out on August 25 at seven residential and business premises and three bank lockers in Mumbai and Vadodara by the ED's Mumbai Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The agency also recovered documents relating to assets, including immovable properties, land and machinery, besides books of accounts, ledgers, other incriminating documents and digital devices.
Two bank accounts containing approximately Rs 27 lakh were frozen during the searches. The three bank lockers were also frozen, the ED said.
The investigation was initiated on the basis of an FIR registered by the CBI's Economic Offences-I unit in Delhi following a complaint filed by the State Bank of India (SBI). The CBI subsequently filed a chargesheet dated September 30, 2024, against Bilpower Limited, its directors and associate companies.
According to the ED, Bilpower Limited had allegedly availed various loan facilities from SBI and subsequently diverted the loan proceeds and manipulated its books of accounts, causing an alleged loss of Rs 160.55 crore to the bank.
Bilpower Limited was engaged in the manufacture of transformer laminations and cores and was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Naresh Kumar Chaudhary, the agency said.
The company had banking arrangements with SBI since 2005, including cash credit, working capital term loan, funded interest term loan, corporate loan and non-fund-based facilities.
The ED's investigation allegedly found that Bilpower Limited had entered into transactions with certain shell or bogus firms that were allegedly used to divert and round-trip bank funds.
According to the agency, letters of credit were allegedly issued in favour of these entities and forged documents were allegedly submitted and used as genuine.
The funds were subsequently allegedly diverted to entities controlled by members of the Choudhary family or their associates, the ED said.
The agency said further investigation into the alleged money laundering and diversion of bank funds is in progress.