Kolkata, Sep 7 (IANS) Enforcement Directorate’s (ED) Kolkata Zonal Office recently conducted search operations at 12 premises across West Bengal under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the investigation into the Kohinoor Power Pvt. Ltd. (KPPL) bank fraud involving default of more than Rs 280 crore, the central probe agency said in a statement on Monday.
According to the ED, the investigation was initiated on the basis of the complaint filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court at Kolkata in respect of the affairs of Kohinoor Power Private Limited (KPPL) and others.
Investigation into the affairs of the company was ordered by the Ministry of Corporate Affairs (MCA) pursuant to the Insolvency and Bankruptcy Board of India (IBBI) forwarding a list of companies in respect of which the Resolution Professional (RP) had fled applications before the NCLT concerning avoidance transactions.
The ED investigation has revealed that KPPL, along with its directors indulged in fraudulent activities, including submission of false information, concealment of material facts, falsification/manipulation of books of accounts and diversion of loan funds, thereby dishonestly inducing the consortium banks to sanction and disburse financial facilities.
The ED investigation has further revealed that the company eventually went into liquidation under the IBC and only around Rs 7 crore could be recovered, leading to 97.5 per cent haircut to the banks.
Further investigation has revealed possession of dozens of immovable properties in and around Kolkata acquired from the proceeds of crime, from which the promoters were allegedly enjoying rental income of around Rs 26 lakh per month.
Search operations have revealed that the promoters of the company Vijay Bothra and Prashant Bothra, are controlling more than 100 shell entities which were allegedly being used for siphoning and laundering the proceeds of crime generated from the bank fraud.
Further, large sums have also been invested abroad in the name of relatives and dummy directors.
Search operations resulted in freezing of bank accounts of more than 150 shell entities/individuals along with securities and other financial investments, including shares, mutual funds and debt securities.
The total value of the bank balances and financial assets frozen during the operations is around Rs 64 crore.
Search operations also resulted in seizure of incriminating digital evidences, company records, financial documents, property deeds, etc, have been seized during the search operations, which are being analysed for tracing the proceeds of crime and identifying further assets acquired from them.
–IANS
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