The Enforcement Directorate's Kolkata Zone-I team has initiated sweeping search operations across 11 locations in Kolkata in connection with a bank fraud case involving over Rs 290 crore. The investigation targets M/s Kohinoor Power Pvt. Ltd. and its associated entities following serious allegations that loan proceeds secured from consortium banks were systematically siphoned off rather than being utilized for their sanctioned industrial purpose.
Diversion of Loan Funds for 66 MW Power Project
According to investigative findings, Kohinoor Power Pvt. Ltd. had obtained substantial credit facilities from banks under the premise of establishing a 66 MW power plant in Jharkhand. However, the probe revealed that the borrowed capital was never fully deployed into the designated power project. Instead, significant portions of the funds were illegally diverted to other group companies and channeled for personal expenditures by the key management personnel.
NCLT Liquidation and Massive Losses for Lenders
The extensive diversion of corporate funds pushed Kohinoor Power into an acute financial crisis, leading to default on its debt obligations. The matter subsequently moved to the National Company Law Tribunal for insolvency and liquidation proceedings. During the liquidation process, creditors managed to recover barely Rs 7 crore against the massive outstanding loan amount. This huge shortfall resulted in severe financial losses for the consortium of lending banks.
Searches Targeting Promoters Prashant Bothra and Vijay Bothra
Special teams from the ED are executing search warrants at residential and business premises connected to key promoters Prashant Bothra and Vijay Bothra. In addition, the premises of other corporate directors, statutory auditors, and affiliated group offices have been brought under scrutiny. Investigating officers are scrutinizing critical financial documentation, digital ledger records, and banking communication to establish the complete paper trail and money laundering pathway of the diverted funds.
