ED Searches Mumbai, Vadodara Premises in SBI Loan Fraud Case; Jewellery and Cash Seized

Vadodara: The Directorate of Enforcement (ED), Mumbai Zonal Office, conducted search operations at seven residential/business premises and three bank lockers in Mumbai and Vadodara in connection with a loan fraud case involving M/s Bilpower Limited on August 25, the agency said today.

As per the press release, ED initiated an investigation on the basis of an FIR registered by CBI-EO-I, Delhi, pursuant to a complaint filed by the State Bank of India. Subsequently, the CBI filed a chargesheet dated 30.09.2024 against M/s Bilpower Limited, its directors and associate companies. It is alleged that M/s Bilpower Limited had availed loan facilities from the State Bank of India and thereafter fraudulently diverted the loan proceeds and manipulated its books of accounts, causing a loss of Rs. 160.55 crore to the bank.

As per the ED, Bilpower Limited, engaged in the manufacturing of transformer laminations and cores, was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Nareshkumar Chaudhary. Since 2005, the company had banking arrangements with the State Bank of India, including Cash Credit, Working Capital Term Loan, Funded Interest Term Loan, Corporate Loan and non-fund-based facilities such as Bank Guarantee, Letter of Credit and Foreign Currency Exposure. The loan account became NPA on 18.04.2012, with a principal outstanding of Rs. 160.55 crore.

Investigation revealed that Bilpower Limited was involved in transactions with certain shell/bogus firms, allegedly used for diversion and round-tripping of bank funds. Letters of Credit (LCs) were allegedly devolved in favour of these entities, with forged documents allegedly submitted and used as genuine. The funds were thereafter further diverted to various entities controlled by members of the Choudhary family or their associates.

During the searches, cash amounting to approximately Rs. 43.90 lakh and jewellery valued at approximately Rs. 12.20 crore were seized. Further, two bank accounts holding approximately Rs. 27 lakh were frozen under Section 17(1A) of the PMLA, 2002, and three bank lockers were also frozen.

The searches also led to the identification and recovery of documents relating to assets, including immovable properties, land and machinery. Other incriminating documents, along with books of accounts and ledgers, and digital devices were also recovered and seized. Further investigation is under progress. DeshGujarat