ED, Hqrs.Office has got Proceeds of Crime (PoC) to the tune of USD 751358.43 equivalent to Rs. 6.31 Crore (approx.) remitted from Mauritius to India in a bank account and froze the same, in the case of CG Power and Industrial Solutions Ltd. and others. Total attachment/ seizure in this case till date is stands at Rs.692.91 Crore (approx.).

The Directorate of Enforcement (ED) has remitted proceeds of crime (PoC) worth USD 751358.43 equivalent to Rs. 6.31 Crore from Mauritius to India in a bank account, freezing the same. This move follows the disclosure made by CG Power and Industrial Solutions Ltd (CGPISL) under SEBI Regulations in August 2019 regarding potential implications on its financial position. The company had understated assets and liabilities, as well as advances to related and unrelated parties.

ED undertook the case for investigation after lender banks filed an FIR with CBI, Delhi, for alleged fraud of Rs. 2435 Crore. ED has issued three Provisional Attachment Orders attaching properties worth Rs. 692.91 Crore. A Key Managerial Personnel was arrested in January 2024, and a Prosecution Complaint has been filed against him and others found involved in the offence of money laundering.

ED investigation revealed that when Gautam Thapar was Chairman of CGPISL and Avantha Group, Rs. 305 Cr ore loan was obtained from Axis Bank. Certain funds were diverted to CGIBV, a subsidiary based in British Virgin Island, and then to CG Middle East (CG ME), a step-down subsidiary of CGPISL. The ED received the PoC which is now remitted to India for confiscation before the Hon'ble Special Court (PMLA), 2002. Further investigation is under progress.

The Directorate of Enforcement (ED) has remitted proceeds of crime (PoC) worth USD 751358.43 equivalent to Rs. 6.31 Crore from Mauritius to India in a bank account and frozen it, as part of an ongoing investigation into alleged fraud by CG Power and Industrial Solutions Ltd (CGPISL). The company had made a disclosure in August 2019 regarding potential implications on its financial position, revealing that assets and liabilities had been understated, advances to related parties had also been underreported, and certain assets had been provided as collateral without proper authorization. This led to the lender banks filing an FIR with the CBI against CGPISL and other individuals involved in the alleged fraud of Rs. 2435 Crore.

ED has issued three Provisional Attachment Orders, attaching properties worth Rs. 692.91 Crore, and arrested one Key Managerial Personnel in January 2024. Prosecution Complaints have been filed against him and others found involved in the offence of money laundering. Further investigation revealed that certain funds from a term loan of Rs. 305 Cr ore were diverted to CGIBV and CG Middle East (CG ME), subsidiaries of CGPISL, before being stored in a bank account in Mauritius. The ED has now remitted the PoC to India for confiscation by the Hon’ble Special Court (PMLA), 2002, with further investigation ongoing.