ED Seizes ₹503 Crore in Maharashtra Fraud Case on October 24

In India, the Enforcement Directorate (ED) has seized assets valued at Rs 503.16 crore linked to Corporate Power Limited and its promoters, the Jayaswal family, due to an alleged bank fraud case. This action, executed under the Prevention of Money Laundering Act on October 24, involves multiple states including Maharashtra, West Bengal, Bihar, Jharkhand, and Andhra Pradesh. The seizure targets properties acquired through shell companies allegedly controlled by the firm's key promoters: Manoj Jayaswal, Abhijeet Jayaswal, and Abhishek Jayaswal. The investigation was spurred when Union Bank of India reported suspicions of a scheme to siphon off funds, resulting in a projected loss of Rs 11,379 crore, including interest. The company faces accusations of manipulating project cost statements to obtain loans, with funds then diverted for unauthorized uses. This highlighted significant financial misconduct within the company’s operations and raised concerns about the broader implications for Indian corporate governance. The ED’s ongoing efforts seek to uncover additional assets, with earlier seizures bringing total assets linked to the investigation to approximately Rs 727 crore. Prior search operations unearthed numerous incriminating documents, alongside freezing of various bank accounts, securities, and cash. This situation reflects a growing trend of scrutiny on corporate entities over financial discrepancies in India. Overall, this case has turned into one of the more substantial investigations into financial fraud in recent years, underlining the complexities of money laundering and fund misallocation in the corporate sector.