Ahmedabad: The Directorate of Enforcement (ED) has filed a Prosecution Complaint (PC) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA), Ahmedabad, on 3/12/2025 in connection with a bank fraud case involving Jyoti Power Corporation Pvt. Ltd. (JPCPL), its directors, and other related persons.

The ED initiated the investigation based on two FIRs registered by the CBI in Mumbai and Bhopal under various provisions of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.

According to an official statement, the ED investigation revealed how the loan accounts were misused by the company and other related persons, thereby laundering Proceeds of Crime (POC) worth Rs. 297.07 crore, obtained and derived from criminal activities related to the scheduled offences. The investigation established that the company, its directors, and other related persons committed large-scale bank fraud by diverting and siphoning funds through various accounts of sister/associated entities and related persons, which were subsequently withdrawn in cash. These amounts were used to purchase properties in the names of former directors, promoters, and related entities. JPCPL also submitted false and forged Letters of Credit to banks, received funds in non-consortium accounts, and falsified books of accounts by showing fake unsecured creditors, thereby causing criminal breach of trust and generating huge sums of POC, resulting in pecuniary gains for themselves.

In this case, a Provisional Attachment Order was earlier issued, attaching various immovable properties worth Rs. 15 crore, including residential flats and plots. DeshGujarat