NEW DELHI: The Enforcement Directorate (ED) has attached assets worth Rs 500 crore located across Maharashtra, West Bengal, Bihar, Jharkhand and Andhra Pradesh in a Rs 4,000-crore bank fraud and money laundering case against Corporate Power Ltd, and its promoters and directors Manoj Jayaswal, Abhijeet Jayaswal and Abhishek Jayaswal.
In Aug, ED had searched the premises of the accused and freezed Rs 223 crore worth of shares and mutual funds of the promoters, and seized unaccounted cash of Rs 56 lakh. Union Bank of India, the complainant in the case, has demanded Rs 11,000 crore dues from the accused, alleging that the loans taken by them were laundered through shell entities.
The latest attachment includes bank deposits, mutual funds, shares, various landed properties and buildings acquired in the name of shell companies, apart from that of Corporate Power Ltd and the family members of Manoj Jayaswal and others, ED said.
The money laundering probe was initiated by the agency based on an FIR registered by the CBI against Corporate Power Ltd and its promoters alleging criminal conspiracy, cheating and forgery.
Union Bank of India had alleged that the accused had submitted manipulated project cost statements to avail loans and also diverted bank funds, causing wrongful loss to the tune of Rs 4,037 crore. The bank has claimed an outstanding of Rs 11,379 crore, including interest.
The agency had further claimed that the accused had laundered the proceeds of crime using at least 250 shell companies and more than 20 charitable organisations registered for the purpose.
“The promoters had engaged in fictitious transactions and fabrication of the accounts of the company and its related entities. Apart from Corporate Power Ltd, other Abhijeet Group entities had similarly committed bank loan frauds such as Corporate Ispat Alloys Ltd amounting to Rs 136 crore, Abhijeet Integrated Steel Ltd amounting to Rs 180 crore, etc,” ED had said after the searches conducted in Aug.
On the 250 shell entities created by the accused, ED said its investigation has revealed that “these entities were used for introducing bogus share premium into the books of accounts and to inflate books of Abhijeet Group entities, enabling them to avail fresh loans from banks through manipulating and doctoring financials”.
“Dummy directors were employed by the Abhijeet group, usually employees of the group, and dormant companies were found to be used for holding companies. Assets were accumulated from the proceeds of crime in the form of movable assets like listed and unlisted shares, loans and advances, mutual funds, FDs and immovable properties,” ED claimed.