ED Freezes 139 Bank Accounts of Gupta Power Infrastructure in Money Laundering Case

Kolkata, October 10 (Daily Kiran) : The Enforcement Directorate (ED) has frozen 139 bank accounts belonging to Gupta Power Infrastructure Limited (GPIL), a corporate entity registered in West Bengal, as part of an ongoing money laundering investigation. This action follows a series of raids conducted by the agency on October 5 across West Bengal and neighboring Odisha.

According to the ED, the decision to freeze the accounts was made after officials from its Kolkata office carried out searches at nine locations linked to GPIL and its management. The investigation centers around allegations of bank fraud involving the company.

During the raids, the ED reportedly seized numerous documents, devices, and records under the Prevention of Money Laundering Act (PMLA) of 2002. In addition to the frozen bank accounts, several mutual funds and shares held in the names of the corporate company and associated individuals were also targeted.

The agency further claimed that three luxury vehicles, including two Mercedes and one BMW, were confiscated. The ED stated that the investigation into the seized materials and financial transactions is ongoing.

The inquiry was initiated based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), which accused GPIL of obtaining substantial fund-based and non-fund-based working capital facilities from a consortium of banks, led by Canara Bank. The total exposure of the consortium was approximately ₹3,590 crores, with Canara Bank’s approved exposure around ₹1,174 crores.

The ED alleges that GPIL manipulated its drawing power and borrowing capacity by inflating stock figures reported to banks compared to those in its audited financial statements. Additionally, the company included around ₹280 crores in project and EPC stock as eligible stock to benefit from working capital facilities.

The ED’s statement further noted that disputed and questionable receivables, including claims rejected by LCLT, were misrepresented as “eligible receivables.” A significant discrepancy of approximately ₹1,115.15 crores was found in the amounts reported by GPIL, suggesting the company overstated its current assets, thereby increasing its borrowing limits.