Mumbai (Maharashtra) [India], August 27 (ANI): The Enforcement Directorate (ED) has seized jewellery valued at approximately Rs 12.20 crore and cash amounting to around Rs 43.90 lakh during searches at seven residential and business premises and three bank lockers in Mumbai and Vadodara in connection with Rs 160.55 crore bank loan fraud case involving Bilpower Limited, the agency said in a press release.
During the searches, the agency also recovered documents relating to assets, including immovable properties, land and machinery, along with other incriminating documents, books of accounts and ledgers, and digital devices. The ED said two bank accounts holding approximately Rs 27 lakh were frozen, while three bank lockers were also frozen.
In a post on X, the ED said its Mumbai Zonal Office conducted searches on August 25 in Mumbai and Vadodara under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
ED, Mumbai Zonal Office, has conducted search operations on 25.08.2026 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at 07 residential/ business premises and 03 bank lockers in Mumbai and Vadodara, in connection with a case involving a loan fraud by… pic.twitter.com/lbcBB39Ec0
— ED (@dir_ed) August 27, 2026
The agency said it initiated the investigation on the basis of an FIR registered by CBI-EO-I, Delhi, following a complaint filed by the State Bank of India. The CBI subsequently filed a chargesheet dated September 30, 2024, against M/s Bilpower Limited, its directors and associate companies.
According to the ED, Bilpower Limited had allegedly availed loan facilities from SBI and thereafter fraudulently diverted the loan proceeds and manipulated its books of accounts, causing an alleged loss of Rs 160.55 crore to the bank.
The agency said the company, which was engaged in manufacturing transformer laminations and cores, was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Naresh Kumar Chaudhary. Since 2005, the company had banking arrangements with SBI, including cash credit, working capital term loan, funded interest term loan, corporate loan and non-fund-based facilities.
The investigation allegedly revealed that Bilpower Limited was involved in transactions with certain shell or bogus firms, allegedly used for diversion and round-tripping of bank funds. The ED said letters of credit were allegedly issued in favour of these entities, with forged documents allegedly submitted and used as genuine, after which funds were further diverted to entities controlled by members of the Choudhary family or their associates.
Further investigation is in progress. (ANI)
