ED Attaches Rs503.16 Crore Assets of Corporate Power and Promoter Jayaswal Family in Rs4,037 Crore Bank Fraud
Moneylife Digital Team 28 October 2024
Investigating a bank fraud case, the Nagpur sub-zonal office of the directorate of enforcement (ED) has attached assets worth Rs503.16 crore belonging to Corporate Power Ltd, the company promoters and directors Manoj Jayaswal, Abhijeet Jayaswal, Abhishek Jayaswal and others. The case is related to a loan of Rs4,037 crore obtained from Union Bank of India and the diversion of the funds. The present outstanding loan amount is Rs11,379 crore, including interest. 
 
In a statement, ED says, "The attached properties include bank balances, mutual funds, shares, various landed properties and buildings acquired in the name of various shell companies apart from that of Corporate Power and the family members of Manoj Kumar Jayaswal and others."
 
Corporate Power is a special purpose vehicle (SPV) set up by Abhijeet Group in 2006 for its power venture in Jharkhand. 
 
The attached movable and immovable assets are located at various places across Maharashtra, West Bengal, Bihar, Jharkhand and Andhra Pradesh.
 
Following a complaint from Union Bank, the central bureau of investigation (CBI) registered a firstr information report against Corporate Power, the company's promoters and directors and others for offences of criminal conspiracy, cheating and forgery. 
 
As per Union Bank of India, the promoters of Corporate Power submitted manipulated project cost statements to avail loans and also diverted the bank funds, causing wrongful loss to the tune of Rs4,037 crore. 
 
In 2019, Union Bank declared the accounts of Corporte Power as fraud and in 2022, filed a complaint with CBI. 
 
Earlier in this case, ED had carried out search operations at various locations in Nagpur, Kolkata and Visakhapatnam and seized various incriminating documents and also frozen proceeds of crime consisting of Rs223.33 crore worth of listed shares and securities, mutual funds, fixed deposits and bank balances and also seized cash of Rs55.85 lakh.
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