CBI files case against Corporate Power Ltd for defrauding banks of Rs 4,038 crore
The Central Bureau of Investigation (CBI) has registered a case against Kolkata-based Corporate Power Ltd, its promoters/directors and others on the allegations of bank fraud of Rs 4,038 crore.
The case has been registered on complaint from Union Bank of India (UBI) Corporate Power Ltd and others including its Promoters/ Directors, unknown public servants & private persons on the allegations of bank fraud of Rs. 4038 Crore to the consortium of 20 banks.
Those named in the chargesheet include Manoj Jayaswal, Abhishek Jayaswal and Abhijeet Jayaswal all part of the promoter family.
The Union Bank of India, the lead bank, declared the account as NPA on 30 September 2013 and subsequently, the other member Consortium Banks also classified the said account as NPA. The accounts of Corporate Power Ltd was declared fraud on 25 October 2019.
It was further alleged that between year 2009 to 2013, the said borrower had submitted manipulated project cost statements and also diverted the bank funds. It was also alleged that the trade receivables mainly including transactions to related parties and funds were diverted to web of various companies who were dummy accounts, accordingly the borrower was able to siphon off the funds.
Searches were conducted at 16 locations including at Nagpur, Mumbai, Ranchi, Kolkata, Durgapur, Ghaziabad, Vishakhapatnam, etc. which led to recovery of incriminating documents, articles etc. Investigation is on.
Corporate Power Ltd is a Special Purpose Vehicle of Abhijeet Group exclusively incorporated in the year 2006 for the power venture in Jharkhand.
The company is undergoing liquidation after the corporate insolvency resolution plan (CIRP) failed to achieve resolution. Corporate Power Ltd owed Rs 11,758 crore to financial creditors.
The Asset Reconstruction Company (India) Ltd had initiated insolvency proceedings against the company in early 2020 for defaulting on a payment of Rs 5,997 crore. In October 2021, the Kolkata-bench of NCLT ordered its liquidation.
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