The Enforcement Directorate (ED) has carried out extensive raids across Chennai, Bengaluru, Delhi, and the National Capital Region in connection with one of the country’s most staggering bank fraud cases. At the center of the storm is Hythro Power Corporation Ltd (HPCL), a power sector company now under liquidation, along with its top promoters. Investigators allege that the company’s directors orchestrated a scheme to misappropriate banking funds amounting to nearly ₹350 crore, siphoning money away from its intended purpose over several years. The raids spanned five locations in NCR, three in Chennai, and one in Bengaluru, aiming to recover incriminating records, trace diverted funds, and identify hidden assets.
Modus Operandi: Diversion & Defaults
According to officials, HPCL and its directors, Amul Gabrani and Ajay Kumar Bishnoi allegedly redirected loans and credit facilities meant for power projects into related companies. Entities named in the probe include Avadh Transformers, GET Power, Revolution Infocom, and Tecpro Engineering. The modus operandi reportedly involved fictitious contracts, inflated invoices, circular transactions, and large advances that were never recovered. HPCL had secured significant credit facilities under a multiple banking arrangement, with Punjab National Bank (PNB) alone carrying an exposure of approximately ₹165 crore. Despite restructuring attempts such as converting bank guarantees into term loans, defaults continued, and by March 2015, HPCL was declared a Non-Performing Asset. The fraud was officially flagged to the Reserve Bank of India in 2024, sparking further investigations.
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Loss, Legal Fallout & Implications
The estimated losses to banks are massive: PNB at around ₹168 crore, ICICI Bank at ₹78 crore, Kotak Mahindra Bank at ₹44 crore, and Union Bank of India at ₹56 crore. The allegations have triggered serious legal consequences under laws related to fraud, cheating, conspiracy, and money laundering. The case originated from a Central Bureau of Investigation (CBI) FIR in February 2025, which subsequently paved the way for the ED’s probe under the Prevention of Money Laundering Act. Forensic audits are ongoing, and with the promoters under scrutiny, focus now shifts to whether diverted funds can be recovered and whether stronger banking oversight will be enforced to prevent such large-scale fraud in the future.