What are the Latest Developments in the Rs 346 Crore Fraud Case?
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Synopsis
The ongoing investigation into a massive Rs 346 crore bank fraud involving Hythro Power Corporation Ltd is making headlines as the ED conducts searches in multiple cities. With significant assets seized and bank accounts frozen, this case raises crucial questions about corporate accountability and the integrity of financial institutions.
Key Takeaways
- ED's extensive investigation into HPCL's fraudulent activities.
- Seizure of digital devices and incriminating documents.
- Bank accounts frozen with significant balances.
- Massive financial losses reported by banks.
- Liquidation proceedings initiated against HPCL.
Gurugram, Sep 12 (NationPress) The Enforcement Directorate (ED) has made significant strides in a Rs 346 crore bank fraud case involving Hythro Power Corporation Ltd (HPCL). During extensive searches across 11 locations in Delhi NCR, Bengaluru, and Chennai, the ED confiscated various digital devices and documents deemed incriminating, as reported on Friday.
The operations were executed by the Gurugram Zonal Office of the ED on Wednesday, adhering to the guidelines set forth by the Prevention of Money Laundering Act (PMLA), 2002.
In the process, multiple bank accounts associated with the promoters of HPCL and related individuals, which held a combined balance exceeding Rs 55 lakh, were also frozen, according to an official statement from the ED.
The coordinated actions targeted the 11 premises linked to HPCL due to allegations of misappropriating and diverting public funds by the accused, including Directors Amul Gabrani and Ajay Kumar Bishnoi, to their affiliated entities, as stated by the ED.
The fraudulent activities reportedly inflicted considerable financial damage upon the banks involved, with the total fraud amounting to Rs 346.08 crore between 2009 and 2015, according to the ED.
This investigation was initiated following an FIR lodged by the Central Bureau of Investigation (CBI) under applicable penal laws and the Prevention of Corruption Act, 1988.
The CBI has charged the accused with criminal conspiracy, deceit, and misconduct, resulting in unjust enrichment.
Findings from the ED's inquiry revealed that HPCL’s leadership had acquired loans from several banks, including Punjab National Bank for Rs 168 crore, Union Bank of India for Rs 56 crore, ICICI Bank for Rs 78 crore, and Kotak Mahindra Bank for Rs 44 crore through a multi-banking agreement.
Despite undergoing numerous restructurings, including converting invoked bank guarantees into funded term loans, HPCL defaulted, leading to the loans being classified as Non-Performing Assets (NPA) and subsequently reported as fraudulent to the Reserve Bank of India.
This alleged fraud has severely undermined trust in corporate lending practices, as highlighted by the ED, which also mentioned that liquidation proceedings for HPCL have commenced under the direction of the NCLT and remain ongoing.
During the searches, a variety of digital devices and crucial documents were recovered, including Asset Valuation Reports, company receivables, loan details, assets owned, filed claims, audited financial statements, Tally Data, legal documents, investor information, and other significant records pertaining to HPCL and its affiliates, including GET Power and Tecpro Systems.
Point of View
It is essential to recognize the gravity of the allegations against Hythro Power Corporation Ltd. The ED's rigorous investigations underscore the need for transparency and accountability in corporate practices, aiming to restore public trust in our financial systems.
NationPress
12/09/2025
Frequently Asked Questions
What triggered the ED's investigation into HPCL?
The investigation was initiated based on an FIR filed by the CBI, alleging criminal conspiracy and fraud under the Prevention of Corruption Act.
What actions did the ED take during the investigation?
The ED conducted searches at 11 premises, seized digital devices, and froze bank accounts amounting to over Rs 55 lakh.
What is the total amount involved in the fraud?
The total fraud amount declared by the banks is Rs 346.08 crore, occurring from 2009 to 2015.
What are the consequences for HPCL?
HPCL is facing liquidation proceedings initiated by the NCLT due to the fraud and default on loans.
What types of documents were seized during the ED's searches?
The ED recovered various incriminating documents, including asset valuation reports and financial records related to HPCL.
