Kolkata: The Enforcement Directorate (ED) on September 3, launched a major search operation across 11 premises in Kolkata in connection with an alleged Rs 290 crore bank fraud involving Kohinoor Power Pvt Ltd, intensifying its probe into the suspected diversion and laundering of borrowed funds.
The searches began early September 3, and were carried out in coordination with security forces and the West Bengal Police. The premises being searched include those linked to Kohinoor Power promoters Prashant and Vijay Bothra, other directors, auditors and offices associated with the group.
According to ED officials, the company had obtained bank loans for setting up a 66 MW power plant in Jharkhand. Investigators have alleged that instead of being used for the intended project, the borrowed funds were diverted to other group entities and allegedly used for personal purposes.
The scale of the alleged financial irregularities is stated by what happened after the company entered insolvency proceedings. Kohinoor Power eventually went before the National Company Law Tribunal (NCLT), but only around Rs 7 crore could be recovered through liquidation, leaving creditors facing massive losses.
The latest searches are aimed at uncovering further evidence and tracing the suspected money trail, officials said. The ED is investigating the case under the Prevention of Money Laundering Act (PMLA).
The agency is examining how the bank loans were allegedly diverted, the entities that received the funds and the ultimate beneficiaries of the transactions.
