Probe Agency ED Raids In 2 Gujarat Cities Over 190 Crore Money Laundering Case

Ahmedabad, July 13. The Ahmedabad Zonal Office of the Directorate of Enforcement (ED) conducted search operations under the Money Laundering Act. The searches were carried out at eight locations in Gujarat's Ahmedabad and Rajkot.

The probe agency raided the residential premises of the Directors of M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) and other associates on Thursday. The raids were connected to a bank fraud case.

Reports indicate the investigation began after an FIR by CBI, Bhopal, under IPC and Prevention of Corruption Act sections. M/s JPCPL, its Promoter-Directors, and unknown persons allegedly defrauded IDBI Bank and Bank of India. They misused funds amounting to Rs. 196.82 Crore. The company also defaulted on repaying Rs. 100 Crore to IDBI Bank, leading to another FIR by CBI, Mumbai.

ED's investigation revealed M/s JPCPL siphoned off part of the bank credit facilities meant for business operations. Cash withdrawals through related entities were also discovered. Instances of releasing Letters of Credit based on forged documents with other firms were noted.

Directors opened bank accounts outside the consortium, diverting Rs. 167.43 Crore receivables into these accounts. The search operations led to the seizure of incriminating digital records, documents, and details of immovable properties. Seized items also included insurance policies in the names of the directors' relatives.