Mumbai, August 27, 2026: The Enforcement Directorate (ED) on Tuesday conducted searches at seven residential and business premises and three bank lockers in Mumbai and Vadodara in connection with a money-laundering probe into an alleged Rs 160.55-crore loan fraud involving Bilpower Limited, the central agency said on Thursday.
Searches At Promoters' Premises
The searches were conducted at premises linked to Bilpower’s promoters and associated sister entities under the Prevention of Money Laundering Act (PMLA). During the operation, the agency seized cash worth around Rs 43.90 lakh and jewellery valued at approximately Rs 12.20 crore. It also froze two bank accounts containing around Rs 27 lakh under Section 17(1A) of the PMLA, besides freezing three bank lockers linked to the promoters and their associated entities.
The agency also recovered documents relating to assets, including immovable properties, land and machinery, besides books of accounts, ledgers, digital devices and other documents that it described as incriminating.
CBI Case And Loan Fraud
The ED case stems from an FIR registered by the CBI’s Economic Offences-I unit in Delhi on the basis of a complaint filed by the State Bank of India (SBI). The CBI subsequently filed a chargesheet on September 30, 2024, against Bilpower Limited, its directors and associated entities, alleging that the company had fraudulently diverted loan proceeds and manipulated its books of accounts, causing a loss of Rs 160.55 crore to the bank.
Bilpower, which was engaged in the manufacture of transformer laminations and cores, was managed by Rajendra Kumar Chaudhary, Suresh Kumar Chaudhary and Naresh Kumar Chaudhary. The company had banking arrangements with SBI since 2005, including cash credit, working capital and term-loan facilities, besides non-fund-based facilities such as bank guarantees and letters of credit. The loan account was declared a non-performing asset (NPA) on April 18, 2012, with a principal outstanding of Rs 160.55 crore.
Alleged Diversion Of Bank Funds
The ED’s investigation found that Bilpower was involved in transactions with shell and bogus firms that were allegedly used to divert and round-trip bank funds. Letters of Credit (LCs) were allegedly devolved in favour of these entities on the basis of forged documents that were submitted and used as genuine. The funds were subsequently routed to various entities allegedly controlled by members of the Chaudhary family or their associates.
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Insolvency And Liquidation
The company’s financial troubles had also led to insolvency proceedings. The National Company Law Tribunal (NCLT), Mumbai, admitted SBI’s insolvency petition against Bilpower in 2021, following which the corporate insolvency resolution process was initiated. The company subsequently went into liquidation. Since then, several e-auction attempts have been made to sell Bilpower’s assets, including efforts to sell the corporate debtor as a going concern as well as individual properties and other assets.
The liquidation proceedings have continued alongside the ED’s PMLA investigation into the alleged diversion of bank funds.
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