In a significant crackdown on financial fraud, the Enforcement Directorate (ED) has seized assets valued at nearly Rs 200 crore belonging to a Kolkata-based businessman and his company in a major bank fraud case.
Details of the Fraud and Asset Attachment
The Kolkata zonal office of the Enforcement Directorate took action against M/s Prakash Vanijya Private Limited and its promoter-director, Manoj Kumar Jain. The probe, conducted under the Prevention of Money Laundering Act (PMLA), 2002, revealed that Jain allegedly defrauded the Central Bank of India of a staggering Rs 234.57 crore.
The agency stated that the fraud was executed through fraudulent transactions and the diversion of loan funds using forged documents. Following its investigation, the ED issued four provisional attachment orders, later confirmed, targeting properties located in West Bengal and Chhattisgarh with a total value of Rs 199.67 crore.
Court-Ordered Restitution to the Bank
In a move to safeguard public funds, the ED and bank officials held several meetings. The Central Bank of India subsequently filed an application for the restitution of the attached properties. The ED supported this with a consent petition, paving the way for judicial approval.
On November 28, 2025, the Chief Judge of the City Sessions Court in Calcutta ruled in favour of the bank. The court observed that the bank was entitled to recover its dues and permitted the restitution of the attached properties. It noted the ED raised no objection, provided the bank's dues were fulfilled and any surplus was deposited with the competent PMLA authority.
Following a market-linked reassessment during the restitution process, the bank's latest valuation report pegs the current realisable value of these properties at Rs 169.47 crore.
Investigation and Tracing of Illicit Funds
The ED initiated its PMLA investigation after examining a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI). Unraveling a complex web of transactions, the agency traced the attached assets by tracking layered financial transactions, a classic method used to disguise the origin of illicit funds.
This case highlights the continued efforts by central agencies to clamp down on high-value financial crimes and recover funds lost by public sector banks, ensuring that perpetrators are held accountable.
