ED probes West Bengal in case of misuse of insolvency process

The Enforcement Directorate (ED) conducted searches at various locations in West Bengal on Friday in a case related to money laundering. According to a report by The Hindu, this action has been taken under the investigation of money laundering associated with the alleged misuse of the insolvency process.

This case is related to Kohinoor Power, lending banks, and several other individuals. According to officials, raids were conducted at a total of eight locations in the State. This investigation has been initiated under the Prevention of Money Laundering Act (PMLA).

The probe is focused on whether 'proceeds of crime' were used suspiciously and whether the National Company Law Tribunal (NCLT) proceedings were allegedly misused. According to a report by Amar Ujala, the agency is investigating the misuse of the insolvency process and NCLT proceedings.

Officials stated that the locations where raids were carried out belong to the company's directors, auditors, and resolution professionals. Through this action, the agency is trying to investigate how irregularities were committed in these processes.

This entire matter pertains to Kohinoor Power and its associated banks, involving suspicions of financial irregularities and the misuse of legal procedures. Currently, this investigation is ongoing, and further details are being gathered by the agency.