The Enforcement Directorate (ED) carried out raids in Jaipur and Kanpur as part of an investigation into a ₹20 crore loan fraud connected to M/s Romesh Power Products Ltd. Searches were conducted at four locations in Jaipur and two in Kanpur, targeting the company’s directors Radha Mohan Khandelwal, Raman Khandelwal, and Chandramohan Khandelwal. According to officials, the raids resulted in the seizure of around ₹9 lakh in cash and important documents linked to immovable properties. These documents are expected to provide significant leads for investigators.
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How the Case Began
The case traces back to a loan of nearly ₹20 crore sanctioned by the Bank of Maharashtra to Romesh Power Products Ltd. The company allegedly failed to repay, after which the account was classified as a Non-Performing Asset (NPA). The Bank subsequently filed a complaint with the Central Bureau of Investigation (CBI), accusing the company’s directors of cheating, conspiracy, and breach of trust. Based on the FIR, the ED initiated proceedings under the Prevention of Money Laundering Act (PMLA). Investigators suspect that funds taken from the bank were diverted and possibly used to purchase or conceal property assets, in an attempt to avoid repayment.
Recovery Efforts and Next Steps
So far, the Bank of Maharashtra has managed to recover about ₹9 crore by auctioning properties and through other recovery methods. However, a substantial portion of the loan remains unrecovered. With the latest ED action, investigators are focusing on tracing additional assets and establishing a clear money trail. The evidence collected could lead to property attachments, prosecution complaints, and further legal action against the accused directors.
These raids highlight the growing pressure on willful defaulters and companies accused of diverting loan funds. This case underscores the importance of stricter due diligence in corporate lending and stronger enforcement of financial accountability. As the investigation advances, it is expected to send a message that fraudulent defaults on large loans will face aggressive scrutiny and legal consequences.