ED raids 8 locations linked to Jyoti Power Corp in Rs 196.82 crore bank fraud case

Ahmedabad (Gujarat) [India], July 13 : Enforcement Directorate (ED) carried out search operations under the Prevention of Money Laundering Act (PMLA) against Jyoti Power Corporation Pvt. Ltd. and its Directors, Kamlesh Mavjibhai Katariya and Nitesh Mavjibhai Katariya, and others.
The searches were conducted at 8 locations in Ahmedabad and Rajkot on July 11, 2024, in connection with a bank fraud case involving Rs 196.82 crore.
"Directorate of Enforcement (ED), Ahmedabad Zonal Office has conducted search operations under the provisions of Prevention of Money Laundering Act (PMLA), 2002, at 8 locations in Ahmedabad and Rajkot on July 11, 2024, including the residential premises of Directors of M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) and other associated persons in connection with a bank fraud case registered against the company M/s Jyoti Power Corporation Pvt. Ltd. and its Directors Kamlesh Mavjibhai Katariya and Nitesh Mavjibhai Katariya," ED said in a statement.
ED initiated investigation on the basis of FIR registered by CBI, Bhopal under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 on the allegations that M/s JPCPL and its Promoter-Directors and other unknown persons cheated and defrauded the IDBI Bank and Bank of India and by availing credit facilities and misusing the funds to the tune of Rs 196.82 Crore. It has also come to notice that the company defaulted in repayment of Rs 100 Crore (approx) availed as credit facility from IDBI Bank, for which the separate FIR has been registered with CBI, Mumbai, ED said.
"ED investigation revealed that various bank credit facilities were availed by M/s JPCPL from Bank of India and IDBI Bank for business operations of the company. However, part of the amounts was siphoned off by its Directors and also, various instances of cash withdrawal through related entities has also come to notice. Multiple instances of release of Letter of Credits to various companies on the basis of forged and fabricated documents in connivance with other firms and their controllers have also come to notice. It is also observed that Directors have opened bank accounts with non-consortium banks and a total funds of Rs 167.43 crore, as receivable from the different debtors/ clients were diverted in these bank accounts outside the consortium," as per the ED.
Search operation resulted in the recovery and seizure of various incriminating digital records & documents including details of immovable properties in the name of HUFs and insurance policies held in the name of kins of the directors of M/s Jyoti Power Corporation Pvt. Ltd, ED said in the statement.
Further investigation is underway.