ED raids 4 Bengal locations in ₹280 crore Kohinoor Power bank fraud
Synopsis
The ED has raided four West Bengal locations simultaneously in a ₹280 crore fraud where a Jharkhand power plant loan was allegedly never used for the project — and instead laundered through shell companies back to Kolkata. Two chartered accountants are in the spotlight, and the case was originally triggered by the insolvency process itself uncovering suspected avoidance transactions.
Key Takeaways
The Enforcement Directorate raided 4 locations in West Bengal on 30 October 2026 in a ₹280 crore bank fraud case.
Kohinoor Power Private Limited (KPPL) is the primary company under investigation, accused of diverting a consortium bank loan meant for a 66 MW power plant in Jharkhand .
CA Ashok Sarathi (Lake Town, Kolkata) and CA Sudipto Ghosh (Uttarpara, Hooghly) are being questioned; Ghosh denies involvement.
Funds were allegedly laundered through shell companies and routed to Kolkata instead of being used for the power project.
The probe was initiated on a complaint by the Serious Fraud Investigation Office (SFIO) , following a referral from the IBBI and the Ministry of Corporate Affairs .
ED officials are examining digital documents, bank records, and financial papers ; further disclosures and possible PMLA asset attachments are expected.
The Enforcement Directorate (ED) on Friday, 30 October 2026, launched simultaneous search operations across four locations in West Bengal in connection with a ₹280 crore bank fraud allegedly linked to a power project in Jharkhand. The central agency's action targets Kohinoor Power Private Limited (KPPL), which is accused of diverting a consortium bank loan meant for constructing a 66 MW power plant through a web of shell companies.
Where the Raids Took Place
ED teams, accompanied by central forces personnel, fanned out across Kolkata, Uttarpara in Hooghly district, Asansol in West Burdwan district, and Howrah. In Kolkata's Lake Town area, officials raided the residence of chartered accountant (CA) Ashok Sarathi at the Avni Oxford (Phase 1) housing complex, conducting a vigorous search and interrogation under the strict guard of central forces since morning.
Separately, ED officials entered the home of Sudipto Ghosh, a chartered accountant residing at Shibtala Street, Uttarpara. Ghosh's family was questioned while his premises were searched. Ghosh has denied any connection to the case, stating he is cooperating with the central investigation agency and that investigators hold the requisite permissions for the probe.
The Alleged Fraud: Shell Companies and Diverted Funds
According to the investigating agency, Kohinoor Power Private Limited (KPPL) secured a loan of approximately ₹280 crore from a bank consortium on the pretext of constructing a 66 MW power plant in Jharkhand. Investigators allege that the funds were never deployed for the stated project; instead, they were allegedly laundered through shell companies and routed to Kolkata.
The ED believes CA Ashok Sarathi played a central role in this financial scam — reportedly facilitating the opening of shell companies and enabling the embezzlement. During the searches, officials are examining digital documents, bank account records, and suspicious financial papers for further leads.
How the Investigation Was Triggered
The ED's action stems from a complaint originally filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court, Kolkata, regarding the affairs of KPPL. The broader probe was ordered by the Ministry of Corporate Affairs (MCA) after the Insolvency and Bankruptcy Board of India (IBBI) forwarded a list of companies in which a Resolution Professional (RP) had filed applications before the National Company Law Tribunal (NCLT) concerning avoidance transactions.
This institutional chain — from IBBI to MCA to SFIO and now the ED — reflects a coordinated multi-agency approach to corporate fraud. Notably, the insolvency resolution process itself served as the trigger, suggesting the alleged diversion came to light when creditors sought recovery of dues.
What Comes Next
Investigators have indicated that the searches are ongoing and that further disclosures are expected once the examination of seized documents is complete. The ED's findings could lead to arrests or the attachment of assets under the Prevention of Money Laundering Act (PMLA). The case adds to a growing list of power-sector frauds under ED scrutiny across eastern India, where infrastructure project loans have allegedly been misused at scale.
Point of View
Suggesting that bankruptcy resolution is increasingly becoming an unexpected anti-fraud tool. The central question is how a ₹280 crore consortium loan passed multiple bank due-diligence checks without the power plant ever materialising. That points to systemic gaps in lender oversight that go well beyond two chartered accountants in Bengal.
NationPress
30 Oct 2026
Frequently Asked Questions
What is the Kohinoor Power Private Limited fraud case?
Kohinoor Power Private Limited (KPPL) allegedly obtained a ₹280 crore loan from a bank consortium on the pretext of building a 66 MW power plant in Jharkhand, but investigators allege the funds were never used for the project and were instead laundered through shell companies to Kolkata. The ED launched searches across four West Bengal locations on 30 October 2026 as part of this investigation.
Who are the key individuals being questioned by the ED?
Chartered accountant Ashok Sarathi, whose premises at the Avni Oxford (Phase 1) complex in Lake Town, Kolkata were raided, is believed by the ED to have played a central role in the scam. Chartered accountant Sudipto Ghosh of Uttarpara, Hooghly district is also being questioned; he has denied any involvement and says he is cooperating with the agency.
How did the ED's investigation into KPPL begin?
The investigation was initiated based on a complaint filed by the Serious Fraud Investigation Office (SFIO) before the 2nd Special Court in Kolkata. The Ministry of Corporate Affairs ordered the probe after the Insolvency and Bankruptcy Board of India (IBBI) forwarded a list of companies — including KPPL — where a Resolution Professional had filed applications before the NCLT over suspected avoidance transactions.
Which locations in West Bengal were raided?
The ED conducted simultaneous searches in four locations: Lake Town in north Kolkata, Shibtala Street in Uttarpara (Hooghly district), Asansol (West Burdwan district), and Howrah. All operations were carried out with central forces personnel.
What could be the next steps in the ED's action?
Once the examination of seized digital documents, bank records, and financial papers is complete, the ED could move to attach assets under the Prevention of Money Laundering Act (PMLA) or make arrests. Further disclosures are expected as the searches continue.
