ED seizes ₹12.20 crore in jewellery in ₹160 crore Bilpower loan fraud
Synopsis
The ED has struck at the heart of a decade-old bank fraud — seizing over ₹12 crore in jewellery and freezing accounts of Bilpower Limited across seven premises in Mumbai and Vadodara. With a CBI chargesheet already in place and shell-firm fund diversion alleged, attachment proceedings under PMLA could be imminent.
Key Takeaways
The ED Mumbai Zonal Office searched seven premises across Mumbai and Vadodara on Tuesday in the Bilpower Limited loan fraud case.
Seized assets include cash of ₹43.90 lakh and jewellery worth ₹12.20 crore ; two bank accounts holding ₹27 lakh and three bank lockers were also frozen.
Bilpower Limited allegedly caused a loss of ₹160.55 crore to the State Bank of India by diverting loan proceeds and manipulating accounts.
The loan account became an NPA on 18 April 2012 ; the CBI filed a chargesheet on 30 September 2024 against the company, its directors, and associates.
Funds were allegedly diverted through shell firms using forged Letters of Credit, with proceeds routed to entities linked to the Choudhary family .
The Enforcement Directorate (ED) seized cash of ₹43.90 lakh and jewellery worth ₹12.20 crore and froze bank accounts of Bilpower Limited during searches at seven residential and business premises across Mumbai and Vadodara on Tuesday, as part of its probe into an alleged ₹160.55 crore bank loan fraud. The action, conducted by the ED Mumbai Zonal Office, also resulted in the freezing of two bank accounts holding ₹27 lakh and three bank lockers.
What the Searches Uncovered
Investigators recovered documents relating to immovable properties, land, and machinery during the raids. Incriminating records including books of accounts, ledgers, and digital devices were also seized. The operations were carried out under Section 17(1A) of the Prevention of Money Laundering Act (PMLA), 2002.
The Alleged Fraud: How It Unfolded
Bilpower Limited, a manufacturer of transformer laminations and cores, had maintained banking arrangements with the State Bank of India (SBI) since 2005. These included Cash Credit, Working Capital Term Loan, Funded Interest Term Loan, Corporate Loan, and non-fund-based facilities such as Bank Guarantee, Letter of Credit, and Foreign Currency Exposure.
The loan account turned into a non-performing asset (NPA) on 18 April 2012, with a principal outstanding of ₹160.55 crore. According to the ED, the company allegedly diverted loan proceeds and manipulated its books of accounts, causing a loss of ₹160.55 crore to the bank.
Investigators allege that Bilpower Limited conducted transactions with shell and bogus firms, with Letters of Credit (LCs) reportedly devolved in favour of these entities using forged documents submitted as genuine. The diverted funds were allegedly routed to entities controlled by members of the Choudhary family or their associates.
Key Accused and Background
The company was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary, and Nareshkumar Chaudhary, according to the ED. The money laundering investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI), Delhi, following a complaint by SBI. The CBI subsequently filed a chargesheet on 30 September 2024 against Bilpower Limited, its directors, and associate companies.
What Happens Next
With assets seized and bank accounts frozen, the ED is expected to move towards attachment proceedings under the PMLA. This action marks a significant escalation in a case that has been under investigation since the loan account first turned NPA over a decade ago. The identification of immovable properties during the searches suggests further attachment orders may follow.
Point of View
And substantive asset seizures are arriving only in 2025. While the ED's action is significant, the gap between fraud detection and asset recovery continues to erode the deterrent value of PMLA enforcement. The alleged use of shell firms and forged LCs mirrors a pattern seen in several large NPA cases, raising questions about whether SBI's internal credit monitoring flagged the diversion in real time or only after the damage was done.
NationPress
27 Aug 2026
Frequently Asked Questions
What is the Bilpower Limited loan fraud case?
Bilpower Limited, a transformer lamination manufacturer, allegedly diverted loan proceeds and manipulated its accounts, causing a loss of ₹160.55 crore to the State Bank of India. The loan account became a non-performing asset on 18 April 2012, and the CBI filed a chargesheet on 30 September 2024 against the company and its directors.
What did the ED seize during the raids on Bilpower Limited?
The ED seized cash of ₹43.90 lakh and jewellery worth ₹12.20 crore across seven premises in Mumbai and Vadodara. Investigators also froze two bank accounts holding ₹27 lakh and three bank lockers, along with documents, digital devices, and books of accounts.
Who are the accused in the Bilpower Limited fraud case?
The company was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary, and Nareshkumar Chaudhary. The CBI chargesheet names Bilpower Limited, its directors, and associate companies.
How was the fraud allegedly carried out?
According to the ED, Bilpower Limited allegedly transacted with shell and bogus firms, devolved Letters of Credit in their favour using forged documents, and routed diverted funds to entities controlled by members of the Choudhary family or their associates.
What happens next in the ED investigation?
With assets seized and accounts frozen under the PMLA, the ED is expected to initiate attachment proceedings against identified properties, including immovable assets, land, and machinery recovered during the searches.
