Mumbai, August 27: The Enforcement Directorate (ED) has taken major action in an alleged ₹160.55 crore bank loan fraud case involving Bilpower Limited, seizing jewellery valued at approximately ₹12.20 crore and cash amounting to around ₹43.90 lakh during searches in Mumbai and Vadodara.
The agency searched seven residential and business premises as well as three bank lockers. It also froze approximately ₹27 lakh held in two bank accounts and sealed three lockers.
ED Raids Bilpower Premises in ₹160.55 Crore Loan Fraud Case
According to the ED, the searches were conducted on August 25 by its Mumbai Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation’s Economic Offences Wing in Delhi following a complaint by the State Bank of India (SBI).
The CBI subsequently filed a chargesheet on September 30, 2024, against Bilpower Limited, its directors and associate companies.
SBI Bank Loan Fraud Allegedly Caused ₹160.55 Crore Loss
According to the ED investigation, Bilpower Limited had obtained various credit facilities from SBI, including cash credit, working capital term loans, funded interest term loans, corporate loans and non-fund-based facilities.
The agency alleges that the company fraudulently diverted loan proceeds and manipulated its books of accounts, resulting in an alleged loss of ₹160.55 crore to SBI.
Bilpower Limited was engaged in the manufacturing of transformer laminations and cores.
Bilpower’s Banking Relationship With SBI Dates Back to 2005
The ED stated that Bilpower Limited had maintained banking arrangements with SBI since 2005 and had availed itself of several financial facilities over the years.
During the investigation, the agency allegedly detected transactions involving certain shell or bogus entities that were purportedly used to divert and circulate bank funds.
Investigators are now examining the movement of the loan proceeds across various accounts and companies to determine their eventual beneficiaries and end use.
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Shell Companies Allegedly Used to Divert Loan Funds
The ED has alleged that certain shell entities played a role in the suspected diversion and circulation of bank funds.
Investigators are examining transactions between Bilpower Limited, associate companies and these entities to establish whether the transfers represented genuine commercial activity or were allegedly structured to move borrowed funds through multiple accounts.
The alleged round-tripping of funds is also under investigation.
Forged Documents and Letters of Credit Under ED Scanner
The ED has alleged that Letters of Credit were issued in favour of certain shell entities as part of the suspected transaction network.
Forged documents were allegedly submitted and accepted as genuine during these transactions.
The funds were subsequently transferred to entities allegedly controlled by members of the Chaudhary family or their associates.
The agency is examining whether these transactions represented genuine business activities or were allegedly structured to divert and subsequently circulate the borrowed funds.
₹12.20 Crore Jewellery and ₹43.90 Lakh Cash Seized
During the searches, the ED seized jewellery worth approximately ₹12.20 crore and cash amounting to around ₹43.90 lakh.
The agency also froze approximately ₹27 lakh held in two bank accounts and sealed three bank lockers.
The recovered jewellery and cash are being examined as part of the money-laundering investigation. Investigators are expected to establish the source of these assets and determine whether they have any connection with the alleged diversion of bank loans.
ED Recovers Digital Devices and Financial Records
The searches also resulted in the recovery of documents relating to immovable properties, land and machinery.
Investigators seized books of accounts, ledgers, financial records and digital devices containing information relevant to the case.
The ED is examining these materials to reconstruct the complete financial trail and determine whether assets were allegedly acquired using funds diverted from the bank.
Chaudhary Family Members Named in Bilpower Investigation
The case involves Bilpower Limited’s management, including Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Naresh Kumar Chaudhary.
The ED is examining the financial dealings between the company, its directors, associate entities and the alleged shell companies.
Investigators are also tracing transactions involving related individuals and entities to determine whether the alleged diversion of bank funds ultimately resulted in the creation or acquisition of assets.
PMLA Investigation Focuses on Money Laundering Trail
The ED’s investigation is currently focused on tracing the money trail linked to the alleged ₹160.55 crore loss suffered by SBI.
The agency is examining the alleged use of forged documents, Letters of Credit, shell entities and suspected round-tripping arrangements to determine how the funds were allegedly moved.
The financial records and digital evidence recovered during the searches could help investigators establish the sequence of transactions and identify the alleged beneficiaries.
Bilpower Loan Fraud Probe Remains Underway
The latest searches and seizures are part of the ongoing PMLA investigation.
The ED is continuing to examine the financial records, digital evidence, bank transactions and asset documents recovered during the operation.
Further action will depend on the material gathered by the agency as it works to establish the complete flow of funds and identify the final beneficiaries of the alleged transactions.
About the author — Ananya Aradhya writes on cybercrime, fraud, scams, cybersecurity, digital safety, and emerging threats. Her work also covers major criminal cases, financial frauds, consumer scams, and stories that highlight risks affecting people in the real and digital world.
