New Delhi, Aug 27 — Taking fresh action in a Rs 160 crore bank loan fraud, the ED seized Rs 43.90 lakh and jewellery worth Rs 12.20 crore and froze bank accounts of Bilpower Limited during searches at seven residential/business premises of the company in Mumbai and Vadodara, an official said on Thursday.
The Directorate of Enforcement (ED), Mumbai Zonal Office, conducted the search operations on Tuesday. During the operation, officials also froze two bank accounts holding Rs 27 lakh under Section 17(1A) of the PMLA, 2002, along with three bank lockers, an official statement said.
The action was taken under the Prevention of Money Laundering Act (PMLA), 2002, and involved seven premises and three bank lockers in a case involving loan fraud by Bilpower Limited.
The ED initiated the investigation based on an FIR registered by the CBI, Delhi, following a complaint filed by the State Bank of India.
Subsequently, the CBI filed a chargesheet dated September 30, 2024 against Bilpower Limited, its directors and associate companies.
The ED said it was alleged that Bilpower Limited had availed loan facilities from the State Bank of India and fraudulently diverted the loan proceeds and manipulated its books of accounts, causing a loss of Rs 160.55 crore to the bank.
Bilpower Limited, which manufactures transformer laminations and cores, was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Nareshkumar Chaudhary, the ED said.
Since 2005, the company had banking arrangements with the State Bank of India, including Cash Credit, Working Capital Term Loan, Funded Interest Term Loan, Corporate Loan and non-fund-based facilities such as Bank Guarantee, Letter of Credit and Foreign Currency Exposure, the ED said.
The loan account became a non-performing asset on April 18, 2012, with a principal outstanding of Rs 160.55 crore, it said.
The investigation revealed that Bilpower Limited was involved in transactions with certain shell/bogus firms, allegedly used to divert and round-trip bank funds. Letters of Credit (LCs) were allegedly devolved in favour of these entities, with forged documents allegedly submitted and used as genuine, the ED said.
The funds were diverted to various entities controlled by members of the Choudhary family or their associates, it said.
The searches on Tuesday also led to the identification and recovery of documents relating to assets, including immovable properties, land and machinery. The ED also recovered and seized other incriminating documents, books of accounts and ledgers, and digital devices, it said.