ED Raids Jyoti Power Corporation in Ahmedabad and Rajkot for Bank Fraud
The Enforcement Directorate (ED) carried out search operations on July 11, 2024, at eight locations in Ahmedabad and Rajkot. These searches targeted Jyoti Power Corporation Pvt. Ltd. and its directors, Kamlesh Mavjibhai Katariya and Nitesh Mavjibhai Katariya, in connection with a bank fraud case involving Rs 196.82 crore.
Details of the Case:
The ED’s investigation was initiated based on an FIR registered by the Central Bureau of Investigation (CBI) in Bhopal. The FIR alleged that Jyoti Power Corporation and its directors, along with other unknown persons, cheated and defrauded IDBI Bank and Bank of India by availing credit facilities and misusing the funds.
It was found that the company defaulted on repaying approximately Rs 100 crore availed as a credit facility from IDBI Bank, leading to a separate FIR registered with CBI, Mumbai.
Findings of the Investigation:
The ED discovered that various bank credit facilities were availed by Jyoti Power Corporation from Bank of India and IDBI Bank for business operations. However, part of the funds was siphoned off by the directors. Instances of cash withdrawal through related entities and the release of Letters of Credit based on forged documents were also found.
The directors opened bank accounts with non-consortium banks, diverting a total of Rs 167.43 crore receivable from different debtors and clients into these accounts.
Seizure and Recovery:
The search operation led to the recovery and seizure of various incriminating digital records and documents, including details of immovable properties and insurance policies held in the names of the directors’ family members.
Further investigation is underway.
