New Delhi [India], January 13 (ANI): The Enforcement Directorate (ED) has attached immovable properties worth Rs 15.01 crore, with a present market value of Rs 20 crore belonging to the directors, partners, and their family members of Jyoti Power Corporation Pvt Ltd (JPCPL), the agency said on Monday.
ED’s Ahmedabad Zonal Office provisionally attached these properties under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated its investigation based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) under Indian Penal Code (IPC), 1860, and Prevention of Corruption Act, 1988. The FIR accuses JPCPL and its directors and promoters, Kamlesh Kataria and Nitesh Kataria, of defaulting on loan repayments to the Bank of India (BOI) in a fraudulent manner, causing a loss of Rs 196.82 crore.
The ED’s probe revealed that JPCPL had availed various loan facilities from BOI and other consortium banks but diverted the funds to personal accounts and other entities.
“The directors allegedly misused the funds by showing fictitious labor payments, transferring money to non-consortium banks, and selling off movable and fixed assets without the bank’s knowledge,” the agency said in a statement.
As per the agency, these fraudulent activities caused significant financial losses to the bank.
Moreover, ED said, investigation uncovered that properties purchased using the diverted funds were later transferred to family members of the directors without consideration, in an attempt to conceal the proceeds of crime.
The ED’s action is a significant step in addressing the alleged financial irregularities. Further investigations are underway to trace additional assets and uncover the full extent of the fraud. (ANI)
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