The Enforcement Directorate (ED) on Friday, October 30, launched simultaneous search operations at four locations in West Bengal in connection with an alleged bank fraud of about Rs 280 crore linked to Kohinoor Power Private Limited (KPPL), officials said. The searches were accompanied by central forces personnel.
Source: Nation Press
The locations covered Kolkata, Uttarpara in Hooghly district, Asansol in West Burdwan district and Howrah. In Kolkata's Lake Town area, ED officials searched the residence of chartered accountant Ashok Sarathi at the Avni Oxford (Phase 1) housing complex. In Uttarpara, officials entered the home of chartered accountant Sudipto Ghosh on Shibtala Street.
Source: IANS, via HiIndia
What the ED alleges
According to the investigating agency, KPPL secured a loan of about Rs 280 crore from a bank consortium on the stated purpose of constructing a 66 MW power plant in Jharkhand. The ED alleges the money was not used for the project and was instead embezzled and laundered through a web of shell companies and routed to Kolkata. These are allegations under investigation, not findings of a court.
The agency believes chartered accountant Ashok Sarathi played a central role in the alleged scam, reportedly facilitating the opening of shell companies. Sudipto Ghosh, who is also being questioned, has denied any involvement and says he is cooperating with the agency, according to the reporting.
Where the case comes from
The ED said its investigation was initiated on the basis of a complaint filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court, Kolkata, in respect of the affairs of Kohinoor Power Private Limited and others.
No court has ruled on the allegations in this case. The searches are part of an ongoing money-laundering investigation, and those named are entitled to the presumption of innocence.
Searches were continuing at the time of the reports on Friday morning. The ED had not announced any arrests or seizures in connection with Friday's operations in the reports available, and Awaaz Punjab will update this story if the agency issues a formal statement on the outcome of the searches.