Bhubaneswar. The Enforcement Directorate (ED) has conducted searches at nine premises linked to Gupta Power Infrastructure Limited (GPIL), its associated entities and individuals connected with its management in Odisha and West Bengal in connection with a bank fraud case. During the operation, the agency seized several incriminating documents, electronic devices and financial records. It also froze 139 bank accounts, mutual fund investments and shares held by the company and individuals associated with it. Three luxury cars, including two Mercedes and one BMW, were also seized.
The searches were conducted by officials of the ED’s Kolkata Zonal Office-II under the provisions of the Prevention of Money Laundering Act (PMLA). The agency initiated its investigation on the basis of a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI). Investigators suspect that the company allegedly manipulated figures relating to its stock and borrowing capacity while availing working capital credit facilities from banks. The final findings will depend on the outcome of the ongoing investigation.
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Bank Consortium’s Exposure Estimated at ₹3,590 Crore
Gupta Power Infrastructure Limited, which is under investigation, is registered in West Bengal and has its corporate office in Bhubaneswar. The company operates manufacturing plants across the country and is engaged in the production and supply of cables, conductors, wires and other related products used in the power sector.
According to the ED, the company had obtained substantial fund-based and non-fund-based working capital facilities from a consortium of banks. The total exposure of the consortium was approximately ₹3,590 crore. This included an exposure of ₹1,174 crore sanctioned by Canara Bank.
Fund-based credit facilities involve the direct provision of funds by banks, while non-fund-based facilities include arrangements such as bank guarantees and letters of credit. These facilities help businesses meet their working capital requirements, manage payments and support day-to-day commercial operations.
Investigators are examining how the company used the credit facilities and whether the financial information submitted to the lending banks accurately reflected its actual financial position. The probe is also expected to establish the extent of any alleged irregularities and their implications for the banks involved.
Financial Records From October 2018 to September 2023 Under Scrutiny
According to ED officials, an analysis of GPIL’s accounts and various financial documents covering the period from October 2018 to September 2023 allegedly revealed that the company had substantially inflated the stock figures reported to banks.
Investigators suspect that the inflated stock declarations may have resulted in the company overstating its drawing power and borrowing capacity. Drawing power is generally determined on the basis of eligible stock and other assets offered as security for working capital facilities. Banks use this assessment to determine the amount a borrower can withdraw against an approved credit limit.
Companies availing working capital loans are required to submit details of their stock and related financial position to lenders. These disclosures help banks assess the borrower’s eligibility and determine the permissible amount of credit that can be drawn from the account.
If the value or quantity of stock is overstated, a borrower may potentially become eligible to access a higher amount of credit than its actual financial position would justify. The ED is examining whether the alleged inflation of stock figures in GPIL’s case affected the amount of credit available to the company and whether the banks suffered losses as a result.
Seized Documents and Financial Transactions Being Examined
The documents, electronic devices and financial records seized during the searches are being examined in detail. Investigators are analysing the material alongside the company’s bank accounts, credit facilities and related financial transactions to establish the sequence of events and identify any suspected irregularities.
Following the freezing of 139 bank accounts, mutual fund investments and shares, the agency is also examining the ownership and financial transactions associated with these assets. The seizure of the three luxury cars formed another part of the enforcement action. However, detailed information regarding the ownership, valuation and alleged connection of the vehicles with the suspected offence has not been disclosed.
The primary objective of the investigation is to determine whether any bank fraud took place in connection with the financial facilities obtained by the company and to trace the movement of funds potentially linked to the alleged irregularities.
Further action will depend on the findings emerging from the examination of the seized material and financial transactions. The investigation remains ongoing, and the allegations will be subject to the applicable legal process.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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