ED freezes 139 bank accounts and shares in Gupta Power Infrastructure fraud case

This is a press release issued by the Directorate of Enforcement (ED), Kolkata Zonal Office-II, announcing search operations and asset freezes related to an investigation into bank fraud committed by Gupta Power Infrastructure Limited (GPIL). It matters to citizens as it details significant financial irregularities and the freezing of assets linked to a major corporate entity and its banking consortium.

Who it concerns: The document concerns M/s Gupta Power Infrastructure Limited (GPIL), its associated entities, persons connected with its management, the consortium of banks (with Canara Bank as lead bank), the Central Bureau of Investigation (CBI), and the Directorate of Enforcement (ED).

What the ED says it did

• ED conducted search operations on 05.10.2026 at 9 premises in West Bengal and Odisha under PMLA, 2002.
• 139 bank accounts, mutual funds, and shares related to GPIL and associated individuals were frozen.
• Three high-end cars (2 Mercedes and 1 BMW) were frozen under Section 17(1-A) of PMLA, 2002.
• The investigation was initiated based on an FIR registered by the CBI.
• GPIL allegedly manipulated drawing power and borrowing capacity by inflating stock values, including ₹240–280 Crore of project/EPC stock.
• A discrepancy of ₹115.15 Crore was observed in receivables, with disputed/doubtful receivables represented as eligible.
• Fixed asset values increased from ₹211.36 Crore to ₹493.39 Crore, including a revaluation of ₹298.98 Crore without supporting reports.
• GPIL allegedly failed to disclose a purchase-bill discounting facility of ₹80 Crore in its FY 2021–22 balance sheet.
• Funds were allegedly routed through borrowing accounts around quarter-end dates to create an appearance of regular loan servicing.
• The total consortium exposure was approximately ₹3,590 Crore, with Canara Bank's sanctioned exposure at approximately ₹1,174 Crore.

Also in the document

• The ED investigation covers the period from October 2018 to September 2023.
• GPIL is registered in West Bengal with its corporate office in Bhubaneshwar, Odisha, and manufactures cables, conductors, and wires.
• The forensic audit identified transactions indicative of possible fund diversion to connected entities.
• Further investigation is currently under progress.