NEW DELHI: The Enforcement Directorate (ED) conducted raids at 11 premises in Kolkata, West Bengal, in connection with a Rs 290 crore bank fraud case against Kohinoor Power Pvt Ltd, the agency said.
The raids started early on Thursday, inspecting premises of the suspects linked to the case, in close coordination with the security forces and the state police force.
Officials said, "Premises of the promoters of the group, Prashant Bothra and Vijay Bothra, along with other directors and auditors, including office premises, are being covered."
The agency said that the firm availed loans from banks for a 66 MW power plant in Jharkhand, but the loans were siphoned off to other group entities and for personal use.
"The company ultimately went to the National Company Law Tribunal (NCLT), and only Rs 7 crore could be recovered in liquidation, resulting in huge losses to the creditors," said the officials.
The officials said the searches are aimed at collecting more evidence and tracing the money trail in the money laundering case being investigated by the federal agency under the Prevention of Money Laundering Act (PMLA).