Massive Bank Fraud Scandal Unfolds in India’s Power Sector

The Enforcement Directorate (ED) launched a series of raids in Delhi-NCR, Tamil Nadu, and Karnataka on Wednesday as part of an ongoing investigation into a Rs 346 crore bank fraud linked to the now-defunct Hythro Power Corporation Ltd (HPCL) and its promoters. The case involves allegations of money laundering through fictitious transactions and misuse of bank loans.

The ED's probe follows a Central Bureau of Investigation (CBI) FIR from February 2025. It alleges that HPCL's promoters, Amul Gabrani and Ajay Kumar Bishnoi, misused loan funds to benefit their associated entities, leading to significant financial losses for various banks, including Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, and Union Bank.

ED carried out searches in eight different locations, unearthing how supposed trade activities masked illicit fund transfers. Their forensic audit exposed numerous irregularities such as unpaid invoices and fabricated job orders, systematically draining resources and compromising creditor interests before the company was declared a fraud in 2024.

(With inputs from agencies.)