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High Court Directed CBI to Act in Rs. 242 Crores Bank Fraud Case Related to Kohinoor Power

The Central Bureau of Investigation (CBI) has registered a case against Kohinoor Power Private Limited and its directors for allegedly diverting Rs. 241.9 crores sanctioned for setting up a thermal power plant in Seraikela-Kharsawan district of Jharkhand. The move followed a directive from the Calcutta High Court, which ordered the central agency to initiate action after the banks involved approached the court.

Also Read: Former BCCL CMD, Director Finance Charged in Rs. 1500 Crores Deviation Case

Loan Sanctioned for 66 MW Plant in Seraikela

As per the FIR, Kohinoor Power was allotted loans totalling Rs. 244 crores between 2008 and 2013 for constructing a 66 MW coal-based thermal power plant at Kandra (Kuchidih). The lenders included Bank of Baroda (Rs. 75 crore), Bank of India (Rs. 75 crore), PTC India Finance (Rs. 50 crore), e-Corporation Bank (Rs. 44 crore), and IFCI Ltd (Rs. 50 crore). The project, initially scheduled for completion in 2013, received deadline extensions till 2016 but never materialised.

Also Read: Protest Against Fraudulent in Amrapali Coal Project in Jharkhand

Funds Diverted, Project Collapsed

Forensic audit reports revealed that the company failed to contribute the required margin money as per the loan agreement while diverting large portions of the sanctioned amount. With no significant investment in the power plant, the project collapsed and the loan accounts turned into Non-Performing Assets (NPAs), causing losses estimated at Rs. 241.9 crores to the banks.

CBI Filed FIR Against Company and Officials

The CBI FIR named the company, its directors Vivek Dugar, Vijay Bothra, and Prashant Bothra along with unidentified bank officials. Investigators will now probe the diversion of funds, lapses in due diligence, and possible collusion that led to the failure of the project. The case is seen as a significant test of accountability in large-scale project financing, especially in the power sector.

Also Read: Jharkhand High Court Rejected Madhu Koda Plea in Rural Electrification Graft Case

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Editorial Desk Written by: Editorial Desk • Fri, Sep 5th, 2025 Updated: Wed, Oct 29th, 2025
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Editorial Desk
Written by Editorial Desk View all articles