NEW DELHI: The Enforcement Directorate initiated an investigation into a bank fraud case involving , conducting search operations on Tuesday across major metropolitan and financial centers, including Delhi, Hyderabad, Jaipur, and Mumbai. The case stems from a complaint filed by the Punjab and Sind Bank, which led to a First Information Report (FIR) by the Central Bureau of Investigation (CBI), and subsequently, the ED’s registration of an Enforcement Case Information Report (ECIR).
Officials revealed that the premises covered in the raids belong to entities and individuals closely linked to a specific person. This individual and their family members are alleged to have siphoned off the loan funds extended by the Punjab and Sind Bank through various entities they owned and controlled. The investigation confirmed that “huge amounts of the loan funds were diverted to various entities… which were not engaged in any business activities.” The operations are centered on a jewellery firm, and the agency is scrutinizing transactions to trace the diversion of bank funds and identify all beneficiaries involved in the scam.
Separate, Much Larger Fraud: Uncovered
In a separate, ED on Friday carried out extensive searches across 12 locations in connection with a distinct bank fraud involving a massive . The searches were geographically spread across three states: West Bengal, Telangana, and Gujarat. The ED’s Kolkata zonal office spearheaded the operations, leading raids at 10 locations in Kolkata (West Bengal), one in Hyderabad (Telangana), and one in Ahmedabad (Gujarat). These raids, based on specific intelligence inputs, were still underway as of Friday, executed in close coordination with state police forces.
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The Core Allegations: Money Laundering and Diversion of Funds
At the heart of both ED investigations are serious allegations of money laundering and financial irregularities. In the case, the core charge is that a single family used entities under its control to siphon off public funds from the bank. The focus of the ED’s probe is to establish a money trail showing how the loan amount was laundered and used for non-business purposes, thereby defrauding the lending institution.
Similarly, in the larger case, the agency is following a parallel thread of suspicion regarding fraudulent loans and the illicit diversion of funds. The agency’s goal is to examine all records and transactions to pinpoint the entire network involved in the alleged diversion of the colossal bank funds and bring to light all individuals and entities that benefited from the multi-crore scam.
Agency Coordination and Ongoing Action
The Enforcement Directorate’s proactive and multi-city operations demonstrate a coordinated push to tackle major financial crimes. The case relies on prior action by the CBI, indicating successful inter-agency cooperation. The ongoing raids for the case, led by the Kolkata zonal office across multiple state jurisdictions, highlight the agency’s capacity to conduct simultaneous, large-scale operations. Officials have stressed that the raids remain active and that the agency is committed to tracing the full extent of the fraud and recovering the misappropriated funds.