# ED Raids 11 Kolkata Locations in Rs 290 Crore Bank Fraud Case Linked to Kohinoor Power

> The Enforcement Directorate has raided 11 premises in Kolkata over a Rs 290 crore bank fraud involving Kohinoor Power Pvt. Ltd., where funds borrowed for a 66 MW Jharkhand power plant were allegedly diverted.

**Type:** article · **Category:** Jharkhand · **Published:** 2026-09-03 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/jharkhand/kohinoor-power-bainka-dhokhadhari-mamale-men-ed-ka-bara-ekshana-kolkata-ke-11-parisaron-para-chhapemari-26815 · **Language:** English
**Tags:** ED Raid, Kolkata, Kohinoor Power, Bank Fraud, Prashant Bothra, NCLT, Jharkhand

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.

## What this means for you
Investigations into major corporate bank frauds directly impact financial sector stability and public banking trust.

- **Across India:** Rising bank bad loans and fraudulent diversions strain the national banking architecture, potentially leading to stricter lending norms and adjusted deposit rates for consumers. Regulatory bodies are likely to enforce tougher compliance checks across consortium banking operations.
- **In West Bengal and Jharkhand:** Enforcement actions in Kolkata signal heightened scrutiny for corporate entities across the region. The collapse of the 66 MW Jharkhand power project stalls expected regional industrial growth and power infrastructure addition.
- **For Bank Creditors:** A recovery of only Rs 7 crore against a Rs 290 crore default highlights critical vulnerabilities in asset valuation and loan recovery frameworks during corporate insolvencies.
- **For Corporate Governance:** Extending investigative scrutiny to company auditors and directors sends a clear warning regarding accountability in preventing illegal fund diversions.

## Questions & Answers

### 1. Why did the ED conduct raids across 11 locations in Kolkata?
The ED raided 11 premises linked to Kohinoor Power Pvt. Ltd. in Kolkata as part of a probe into a Rs 290 crore bank fraud case.

### 2. What are the primary allegations against Kohinoor Power?
The company allegedly diverted bank funds sanctioned for a 66 MW power plant in Jharkhand into group companies and personal expenditures.

### 3. How much money was recovered during the NCLT liquidation process?
Creditors recovered only about Rs 7 crore during the liquidation process, resulting in massive losses against the Rs 290 crore loan default.

### 4. Which individuals and entities are under ED investigation?
The ED is examining promoters Prashant Bothra and Vijay Bothra, along with other company directors, statutory auditors, and affiliated group offices.

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