ED Searches Seven Premises in Bilpower Loan Fraud Case; Seizes Cash and Jewellery Worth Over ₹12 Crore
The Enforcement Directorate (ED), Mumbai Zonal Office, conducted search operations on August 25, 2026, at seven residential and business premises and three bank lockers in Mumbai and Vadodara in connection with an alleged loan fraud involving M/s Bilpower Limited.
The searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002. During the operation, the agency seized approximately ₹43.90 lakh in cash and jewellery valued at around ₹12.20 crore. Two bank accounts containing approximately ₹27 lakh were also frozen under Section 17(1A) of the PMLA, along with three bank lockers.
The ED initiated its investigation based on an FIR registered by the CBI’s Economic Offences-I branch in Delhi following a complaint filed by the State Bank of India (SBI). The CBI subsequently filed a chargesheet on September 30, 2024, against Bilpower Limited, its directors and associated companies.
According to the allegations, Bilpower Limited obtained various loan facilities from SBI but later diverted the funds and manipulated its books of accounts, causing an estimated loss of ₹160.55 crore to the bank.
Bilpower Limited, which is engaged in manufacturing transformer laminations and cores, was managed by RajendraKumar Chaudhary, SureshKumar Chaudhary and Nareshkumar Chaudhary.
The company had maintained banking arrangements with SBI since 2005, availing facilities such as Cash Credit, Working Capital Term Loan, Funded Interest Term Loan and Corporate Loan. It also had access to non-fund-based facilities, including Bank Guarantees, Letters of Credit and Foreign Currency Exposure.
The company’s loan account was classified as a Non-Performing Asset (NPA) on April 18, 2012, with an outstanding principal amount of ₹160.55 crore.
The ED’s investigation allegedly uncovered transactions between Bilpower Limited and certain shell or bogus firms that were suspected of being used to divert and route bank funds back into the network. The agency found that Letters of Credit (LCs) were allegedly devolved in favour of these entities, with forged documents submitted and presented as genuine. The funds were subsequently routed to various entities reportedly controlled by members of the Chaudhary family or their associates.
During the searches, officials also recovered documents relating to assets, including immovable properties, land and machinery. Several other incriminating records, books of accounts, ledgers and digital devices were seized for further examination.
The ED’s investigation into the alleged diversion of bank funds and the identification of assets linked to the case is continuing.
News Source : Directorate of Enforcement (ED) – Official Press Release, Government of India
