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ED Attaches Rs 67.79 Crore in Jharkhand Power-Project Bank Fraud, Total Now Rs 571 Crore

The PMLA action follows a CBI case alleging diversion of consortium loans for a proposed 1,080 MW plant through a web of shell firms.

Overview

  • The ED’s Nagpur unit provisionally attached bank balances, land, buildings and flats spread across Maharashtra, Kolkata, Delhi and Andhra Pradesh.
  • The properties are linked to promoter Manoj Jayaswal, his family, associates and Corporate Power Ltd, according to the agency.
  • Investigators report the use of more than 800 shell companies and around 5,000 bank accounts to siphon and launder the loan proceeds.
  • Union Bank of India, the lead lender, alleges a principal loss of Rs 4,037 crore, which the ED says amounts to Rs 11,379 crore with interest.
  • The borrower’s account turned non-performing in 2013 and was declared fraudulent in 2019, with prior ED searches yielding cash, documents and financial assets.