ED raids 11 Kolkata premises in ₹290-crore power plant loan fraud probe
Synopsis
The ED has raided 11 Kolkata premises in a ₹290-crore bank-loan fraud case where funds meant for a 66 MW Jharkhand power plant were allegedly siphoned off — with creditors recovering just ₹7 crore out of ₹290 crore in liquidation. It is the second major ED operation in Kolkata in under 48 hours, pointing to an escalating federal enforcement push in West Bengal.
Key Takeaways
The ED searched 11 premises in Kolkata on 3 September under the PMLA, 2002 .
A private company allegedly diverted ₹290 crore in bank loans meant for a 66 MW power plant in Jharkhand to group entities and personal use.
Only ₹7 crore was recovered during NCLT liquidation, leaving creditors with heavy losses.
Promoters Prashant Bothra and Vijay Bothra , along with directors and auditors, are under the scanner.
A separate ED operation on Shakespeare Sarani, Kolkata the previous day targeted an alleged toll-plaza corruption network spanning 14 locations across five states .
The Enforcement Directorate (ED) on Thursday, 3 September conducted search operations across 11 premises in Kolkata as part of a money-laundering investigation linked to an alleged ₹290 crore bank-loan fraud by a private company. The searches, carried out under the Prevention of Money Laundering Act (PMLA), 2002, targeted promoters, directors, and auditors connected to the case.
The Alleged Fraud
According to the ED, the private company availed loans from banks ostensibly to set up a 66 MW power plant in Jharkhand. The funds were allegedly 'siphoned off' to other group entities and used for personal purposes, rather than for the stated infrastructure project.
The company subsequently approached the National Company Law Tribunal (NCLT) for resolution. Only ₹7 crore could be recovered during liquidation proceedings, leaving creditors with substantial losses on what was a ₹290 crore exposure.
Who Is Under the Scanner
The searches covered office and residential premises of the group's promoters, Prashant Bothra and Vijay Bothra, along with other directors and auditors linked to the company. The operation was conducted in close coordination with central security forces and the state police, officials said.
What Investigators Are Looking For
ED officials stated the raids are aimed at gathering additional evidence and tracing the money trail in the laundering case. The agency is working to establish how the loan funds moved through various group entities and whether assets acquired through the alleged proceeds can be attached.
Parallel ED Action in Kolkata
Notably, this is the second major ED operation in Kolkata within two days. On Wednesday, the agency conducted a surprise search at a multi-storey residence on Shakespeare Sarani in central Kolkata in connection with an alleged corruption case involving toll plaza collections on national highways. Simultaneous raids were conducted across seven other states, including West Bengal, Uttar Pradesh, Madhya Pradesh, Maharashtra, and Rajasthan, covering 14 locations in total, based on a complaint filed in Lucknow.
In that separate case, investigators found that money was allegedly collected through fake receipts at toll booths and removed without any corresponding entries in government ledgers, according to ED sources. The convergence of two major financial crime probes in Kolkata within 48 hours signals an intensified federal enforcement posture in West Bengal.
What Comes Next
The ED is expected to file a prosecution complaint before a designated PMLA court once the evidence gathered in the searches is analysed. Asset attachment proceedings against the Bothra group's properties could follow if the money trail is established. The case adds to a growing list of infrastructure-linked loan fraud investigations the agency has pursued in eastern India.
Point of View
Routed through group entities, and the shell left to face NCLT with ₹7 crore against ₹290 crore owed. What mainstream coverage underplays is the creditor loss angle — public sector banks almost certainly hold a chunk of that exposure, meaning taxpayer capital is at stake. The toll-plaza case running in parallel raises a separate question: how systemic is the fake-receipt mechanism across national highway concessions, and why did it take a Lucknow complaint to trigger multi-state raids?
NationPress
3 Sept 2026
Frequently Asked Questions
What is the ₹290 crore fraud case the ED is investigating in Kolkata?
It is a bank-loan fraud case in which a private company allegedly availed ₹290 crore in loans to build a 66 MW power plant in Jharkhand but diverted the funds to other group entities and personal use. The ED is probing the case under the Prevention of Money Laundering Act, 2002.
Who are the key suspects in the Kolkata ED raids?
The ED has identified promoters Prashant Bothra and Vijay Bothra as key suspects, along with other directors and auditors of the group. Their office and residential premises in Kolkata were among the 11 locations searched on 3 September.
How much money was recovered in the NCLT liquidation?
Only ₹7 crore was recovered during liquidation proceedings before the National Company Law Tribunal, against a total loan exposure of ₹290 crore, resulting in significant losses for the creditors.
What was the separate ED operation on Shakespeare Sarani about?
On Wednesday, the ED raided a multi-storey residence on Shakespeare Sarani in central Kolkata in connection with an alleged corruption case at national highway toll plazas. Investigators found that money was collected using fake receipts with no corresponding entries in government ledgers, and simultaneous raids were conducted across 14 locations in five states.
What happens after the ED searches are completed?
The ED will analyse the evidence and documents seized to trace the money trail. If the laundering proceeds are established, the agency can move to attach assets and file a prosecution complaint before a designated PMLA court.
