13 July 2024

Ahmedabad, July 13, 2024: The Directorate of Enforcement (ED), Ahmedabad Zonal Office, executed targeted search operations on July 11, 2024, at multiple locations in Ahmedabad and Rajkot under the Prevention of Money Laundering Act (PMLA), 2002. The searches included residential premises linked to Directors of M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) and associated individuals.

This action stems from a significant bank fraud case involving M/s Jyoti Power Corporation Pvt. Ltd. and its Directors, Kamlesh Mavjibhai Katariya and Nitesh Mavjibhai Katariya. The ED's investigation was initiated based on a FIR filed by the Central Bureau of Investigation (CBI), Bhopal, under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.

According to the allegations, M/s JPCPL and its officials allegedly defrauded IDBI Bank and Bank of India of Rs. 196.82 Crore through misuse of credit facilities. Additionally, the company defaulted on approximately Rs. 100 Crore in repayment to IDBI Bank, leading to a separate FIR filed by CBI, Mumbai.

During the searches, ED unearthed evidence suggesting that M/s JPCPL availed substantial credit facilities from Bank of India and IDBI Bank for business operations. However, funds were allegedly siphoned off by the Directors. Instances of cash withdrawals through related entities and the issuance of Letters of Credit based on forged documents were also discovered.

Furthermore, the investigation revealed that the Directors opened accounts with non-consortium banks, diverting funds totaling Rs. 167.43 Crore intended for repayment by debtors and clients. The search operation yielded incriminating digital records, documents detailing immovable properties under Hindu Undivided Families (HUFs), and insurance policies held by relatives of the Directors.

The ED's investigation into this financial misconduct is ongoing, with further actions expected as the case progresses.

  PREVENTION OF MONEY LAUNDERING ACT, 2002