The Enforcement Directorate has arrested Aam Aadmi Party leader Deepak Singla in connection with a Rs 155 crore bank fraud case, after carrying out coordinated searches across Delhi and Goa and recovering financial records and digital material that investigators say point to a wider network of fund diversion and layered transactions.
Raids Across Delhi and Goa Lead to Arrest
According to officials, the case is linked to alleged irregularities involving Mahesh Timber Private Limited, where multiple individuals and companies are suspected of defrauding banks through manipulated transactions and fraudulent financial structuring. The agency said the arrest followed searches at seven locations connected to Deepak Singla, Mahesh Singla, Amrik Gill and associated entities.
During the raids, investigators reportedly seized documents, digital devices and transaction records that helped establish preliminary links in the alleged fraud network. Based on this material, Deepak Singla was taken into custody for further questioning.
Officials said the focus of the investigation is to trace the complete flow of funds and identify all entities involved in what they suspect is a laundering chain built around diverted bank loan money.
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Shell Companies and Layered Transfers Under Scanner
Investigators believe the alleged fraud involved the use of shell companies to route and conceal illicit funds. According to the agency, these entities were used to move money through repeated transfers across multiple accounts and jurisdictions, making it harder to identify the original source and ultimate destination of the funds.
Preliminary findings suggest that bank loan amounts were systematically diverted instead of being used for their declared business purposes. Authorities suspect the money was moved through layered transactions across different states in order to obscure the financial trail and avoid detection.
Officials associated with the probe said the matter appears to go beyond a single instance of corporate loan default and may involve a broader financial structure in which several individuals acted in coordination.
Probe Widens to Other Individuals and Entities
Deepak Singla’s role is now under detailed scrutiny, with investigators assessing whether he had a direct operational role in the alleged financial manipulation or acted alongside other key individuals. Parallel inquiries are also under way into the involvement of Mahesh Singla and Amrik Gill.
The agency is analysing banking records, company filings and digital transaction logs to reconstruct the movement of funds. Officials said the pattern of transactions suggests deliberate layering designed to mask the origin of the money and complicate regulatory scrutiny.
Sources within the agency said further arrests cannot be ruled out as the investigation progresses. The ED is expanding its inquiry to include firms and individuals suspected of benefiting from the diverted funds. While the arrest has drawn political reactions, officials maintained that the action is based on financial evidence and documentary material gathered during the investigation. Deepak Singla remains in custody for interrogation as the agency continues to map the wider financial network linked to the case.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
