KOLKATA (India CSR): The Directorate of Enforcement (ED), Kolkata Zonal Office-I, conducted searches at 12 premises across West Bengal on September 3, 2026, in a money-laundering investigation linked to Kohinoor Power Private Limited (KPPL). The case concerns an alleged bank fraud involving a loan default of more than Rs. 280 crore, according to the agency. The searches were carried out under the Prevention of Money Laundering Act, 2002 (PMLA). The ED said it has frozen bank accounts, securities and other financial investments with an approximate value of Rs. 64 crore during the operation.
SFIO Complaint Basis
The ED said its investigation began on the basis of a complaint filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court, Calcutta, in Criminal Case No. 11/2024. The complaint concerns the affairs of KPPL and other persons or entities. According to the ED, the Ministry of Corporate Affairs had ordered an investigation into the company after the Insolvency and Bankruptcy Board of India forwarded a list of companies in which resolution professionals had approached the National Company Law Tribunal regarding alleged avoidance transactions.
Loan Diversion Alleged
The agency alleged that KPPL and its directors submitted false information, concealed material facts, and manipulated books of accounts to obtain financial facilities from a consortium of banks. The ED further alleged that loan funds were diverted after the facilities were sanctioned and disbursed. KPPL subsequently went into liquidation under the Insolvency and Bankruptcy Code, the ED said. It added that only about Rs. 7 crore could be recovered, resulting in an estimated 97.5% haircut for the banks.
Properties And Rentals
The ED said the liquidator had filed applications under Sections 66 and 67 of the IBC, highlighting alleged avoidance transactions. According to the agency, funds were allegedly transferred to related concerns through bogus transactions and later used to acquire properties in the names of promoters, family members and entities owned or controlled by them. The investigation has identified dozens of immovable properties in and around Kolkata that were allegedly acquired from proceeds of crime, the ED said. It alleged that the promoters were receiving rental income of approximately Rs. 26 lakh per month from these properties.
Shell Entities Probed
The search operations indicated that promoters Vijay Bothra and Prashant Bothra were allegedly controlling more than 100 shell entities, the ED said. These entities were allegedly used to siphon and launder proceeds of crime generated from the alleged bank fraud. The agency further alleged that substantial investments were made abroad in the names of relatives and dummy directors. These aspects remain under investigation.
₹64 Crore Assets Frozen
The ED said it froze bank accounts belonging to more than 150 shell entities and individuals. The action also covered financial assets including shares, mutual funds and debt securities. The combined value of the frozen bank balances and financial assets is approximately Rs. 64 crore, according to the agency. The searches also led to the seizure of digital evidence, company records, financial documents and property deeds. The ED said these materials are being analysed to trace the alleged proceeds of crime and identify additional assets allegedly acquired from them. Further investigation is underway.
Key Facts
| Particular | Details |
|---|---|
| Investigating agency | Directorate of Enforcement, Kolkata Zonal Office-I |
| Search date | September 3, 2026 |
| Locations searched | 12 premises across West Bengal |
| Company under probe | Kohinoor Power Private Limited (KPPL) |
| Alleged loan default | More than ₹280 crore |
| Assets frozen | Approximately ₹64 crore |
| Entities/individuals affected | More than 150 shell entities and individuals |
| Alleged monthly rental income | Approximately ₹26 lakh |
| Recovery in liquidation | Around ₹7 crore, as stated by ED |
| Further status | Investigation underway |
