Kolkata CA Under ED Scanner in Rs 280 Crore Loan Fraud Probe
A major financial probe has widened in West Bengal after the Enforcement Directorate (ED) launched raids across four locations in connection with a Rs 280 crore bank fraud.
The raids, conducted on Friday, target alleged money laundering linked to a power plant project in Jharkhand. Funds connected to the project were reportedly moved to Kolkata. The ED's focus is on a chartered accountant from Lake Town in north Kolkata, who is accused of using fake companies, commonly called shell companies, to carry out corruption running into crores of rupees.
The search operation extends beyond the city. Officials are working in Uttarpara in Hooghly district, Asansol in West Bardhaman district, and Howrah, in addition to Kolkata.
The ED team, escorted by central forces, reached the home of Sudipto Ghosh on Shibtala Street in Uttarpara on Friday morning. Ghosh, who is a chartered accountant, is being questioned, and his family members are also being asked about the matter. The house is being searched.
Ghosh has denied any role in the alleged corruption. He says he is cooperating with the central agency, and officials have said that the necessary permissions for the probe were obtained.
Separately, ED officials raided the residence of another chartered accountant, Ashok Sarathi, in the Avani Oxford (Phase 1) housing complex in Lake Town. An intensive search and questioning have been going on there since morning, under tight security from central forces.
According to investigating agency sources, the case concerns the alleged misuse of a bank loan taken in the name of building a power project in Jharkhand, along with money laundering. The private company at the centre of the inquiry is Kohinoor Power Private Limited (KPPL). The accountant is accused of obtaining the loan on the pretext of setting up a 66 MW power plant.
The loan, taken from a group of banks, was roughly Rs 280 crore. Investigators say the amount was not spent on the project and was instead diverted through a network of shell companies.
Officials believe Ashok Sarathi holds a key position in the financial irregularities. Apart from questioning those present, ED teams are seeking digital records, bank statements, and several suspicious papers. The outcome of the probe will determine what additional details come to light.
The investigation was initiated based on a complaint lodged by the Serious Fraud Investigation Office (SFIO) before the second special court in Kolkata, related to KPPL and other companies.
The Ministry of Corporate Affairs (MCA) had earlier ordered a probe into the company's functioning. That decision followed a list of companies shared by the Insolvency and Bankruptcy Board of India (IBBI), in which resolution professionals had moved the National Company Law Tribunal (NCLT) with avoidance transaction applications.