ED freezes 139 bank accounts of Bengal's GPIL in ₹3,590 crore bank fraud probe

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ED freezes 139 bank accounts of Bengal's GPIL in ₹3,590 crore bank fraud probe

Synopsis

The ED has frozen 139 bank accounts, mutual fund holdings, shares, and three luxury cars belonging to West Bengal's Gupta Power Infrastructure Limited — a company allegedly at the centre of a ₹3,590 crore bank fraud involving inflated stock figures and disputed receivables worth over ₹1,115 crore. With nine locations raided and incriminating documents seized, the case marks one of the eastern region's most significant PMLA actions this year.

Key Takeaways

The Enforcement Directorate (ED) froze 139 bank accounts of Gupta Power Infrastructure Limited (GPIL) , a West Bengal -registered company, on 10 October 2026 .
Raids were conducted at nine locations in West Bengal and Odisha on 5 October 2026 , yielding incriminating documents, devices, and records.
The agency also froze mutual fund holdings and shares and confiscated three luxury cars (two Mercedes, one BMW).
The consortium bank exposure linked to the alleged fraud stands at approximately ₹3,590 crore , with Canara Bank 's sanctioned share at around ₹1,174 crore .
A discrepancy of around ₹1,115.15 crore was found in GPIL's reported receivables, with claims allegedly rejected by the NCLT still listed as eligible.
The ED probe was triggered by a CBI FIR ; financial forensics are ongoing under the PMLA, 2002 .

The Enforcement Directorate (ED) on Saturday, 10 October 2026, confirmed freezing 139 bank accounts of Gupta Power Infrastructure Limited (GPIL), a West Bengal-registered company, in connection with a money-laundering investigation linked to an alleged bank fraud involving a consortium exposure of approximately ₹3,590 crore. The action is among the most sweeping asset-freezing moves the agency's eastern regional office has undertaken this year.

Raids and Seizures That Triggered the Freeze

The ED's Kolkata-based eastern regional office conducted raids and search operations across nine locations in West Bengal and neighbouring Odisha on 5 October 2026, targeting premises linked to GPIL, its associated entities, and individuals connected with its management. Following the searches, the agency stated that various incriminating documents, digital devices, and financial records were seized under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Beyond the 139 bank accounts, the ED also froze a number of mutual fund holdings and shares held in the name of GPIL and associated individuals. Additionally, three high-end vehicles — two Mercedes and one BMW — were confiscated during the operation.

The Alleged Bank Fraud: What the ED Claims

The ED's probe was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI), which alleged that GPIL had availed substantial fund-based and non-fund-based working-capital facilities from a consortium of banks, with Canara Bank as the lead lender. The consortium's total exposure stood at approximately ₹3,590 crore, of which Canara Bank's sanctioned exposure alone was around ₹1,174 crore.

According to the ED, GPIL allegedly manipulated its drawing power and borrowing capacity by substantially inflating stock figures reported to banks compared to those reflected in its audited financial statements. The company reportedly included around ₹280 crore worth of project and EPC stock as eligible working-capital stock — a classification the agency says was impermissible.

The ED statement further alleged that disputed and doubtful receivables — including claims reportedly rejected by the National Company Law Tribunal (NCLT) — were continued to be represented as eligible receivables. A major discrepancy of around ₹1,115.15 crore was observed in the receivables reported by GPIL, 'indicating possible inflation of its current assets and consequent enhancement of borrowing limits,' the ED stated.

Investigation Status and What the Agency Said

'The contents of the seized material and financial transactions are currently under investigation,' the ED said in its official statement. The agency, which functions as the investigation arm of the Ministry of Finance, has not yet named any individual accused or made any arrests in connection with this case.

This is notably the latest in a series of large-scale PMLA actions the ED has taken against corporate entities in eastern India, where bank fraud cases linked to inflated stock and receivables have drawn regulatory attention in recent years.

What Happens Next

With seized material under active scrutiny, investigators are expected to issue formal notices under the PMLA and could move toward attaching immovable properties if the evidence trail warrants it. Any charge sheet or supplementary prosecution complaint before the PMLA court will depend on the outcome of the ongoing financial forensics. GPIL has not issued a public statement in response to the ED's claims, and its position remains to be formally heard.

Point of View

Pad receivables, and draw down far beyond what the books justify. The ₹1,115 crore receivables discrepancy is not a rounding error — it signals a systemic misrepresentation that a consortium of banks, led by a public-sector lender, apparently failed to catch in time. What is missing from the narrative so far is accountability at the lender level: how were these inflated figures accepted through repeated credit reviews? The ED's move to freeze assets is procedurally necessary, but the deeper question — why bank due diligence failed on a ₹3,590 crore exposure — remains unanswered.
NationPress
10 Oct 2026

Frequently Asked Questions

What is the Gupta Power Infrastructure Limited (GPIL) money-laundering case?
It is an ED investigation under the PMLA, 2002, into alleged bank fraud by GPIL, a West Bengal company that reportedly inflated its stock and receivables to avail excess working-capital facilities from a bank consortium with a total exposure of around ₹3,590 crore. The probe was triggered by a CBI FIR alleging the fraud.
Why did the ED freeze 139 bank accounts of GPIL?
The ED froze the accounts following raids at nine locations in West Bengal and Odisha on 5 October 2026, where incriminating documents, digital devices, and financial records were seized. The freeze is a preventive measure to stop suspected proceeds of crime from being moved or dissipated during the investigation.
What is Canara Bank's role in the GPIL case?
Canara Bank was the lead lender in the bank consortium through which GPIL allegedly availed the fraudulent working-capital facilities. Canara Bank's sanctioned exposure alone stood at around ₹1,174 crore, out of a total consortium exposure of approximately ₹3,590 crore.
What assets have been seized in the GPIL money-laundering case?
Apart from 139 bank accounts, the ED has frozen mutual fund holdings and shares held in GPIL's name and by associated individuals. Three high-end vehicles — two Mercedes and one BMW — were also confiscated during the search operations.
What happens next in the ED's investigation of GPIL?
The agency has said that seized materials and financial transactions are currently under investigation. If the evidence warrants it, the ED is expected to issue formal PMLA notices, potentially attach immovable properties, and eventually file a prosecution complaint before the PMLA court. No arrests have been announced yet.
Nation Press
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