ED Freezes Assets Worth ₹64 Crore in Kohinoor Power Bank Fraud Case
The Enforcement Directorate (ED), Kolkata Zonal Office-I, conducted search operations at 12 locations across West Bengal on September 3, 2026, as part of its money laundering investigation into the alleged bank fraud involving Kohinoor Power Private Limited (KPPL). The case involves a loan default of more than ₹280 crore.
The investigation was initiated following a complaint filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court in Calcutta in Criminal Case No. 11/2024. The Ministry of Corporate Affairs had ordered an investigation into KPPL and related entities after the Insolvency and Bankruptcy Board of India (IBBI) forwarded details of companies facing applications concerning alleged avoidance transactions before the National Company Law Tribunal (NCLT).
According to the ED, KPPL and its directors allegedly engaged in fraudulent activities, including submitting false information, concealing material facts, manipulating company accounts and diverting loan funds. These activities allegedly induced a consortium of banks to sanction and disburse financial facilities.
The company subsequently entered liquidation under the Insolvency and Bankruptcy Code (IBC), with only around ₹7 crore recovered against the outstanding dues. This reportedly resulted in a 97.5% haircut for the banks, meaning they recovered only a small fraction of their claims.
The ED said the liquidator had also filed applications under Sections 66 and 67 of the IBC, highlighting suspected avoidance transactions. Funds were allegedly siphoned off to related entities through bogus transactions and later used to acquire properties in the names of the promoters, their family members and entities they owned or controlled.
Further investigation reportedly uncovered dozens of immovable properties in and around Kolkata that were allegedly acquired using proceeds of crime. The promoters were said to be earning approximately ₹26 lakh per month in rental income from these properties.
The agency has also alleged that KPPL promoters Vijay Bothra and Prashant Bothra controlled more than 100 shell entities that were used to siphon off and launder money generated through the alleged bank fraud. Investigators also found indications that substantial amounts had been invested overseas in the names of relatives and dummy directors.
During the search operations, the ED froze bank accounts belonging to more than 150 shell entities and individuals. The action also covered securities and other financial investments, including shares, mutual funds and debt securities. The total value of the frozen bank balances and financial assets is estimated at approximately ₹64 crore.
The agency also seized digital evidence, company records, financial documents and property deeds. These materials are being examined to trace the alleged proceeds of crime and identify additional assets that may have been acquired using the diverted funds.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
