New Delhi: The Enforcement Directorate (ED) has launched a major crackdown in connection with an alleged ₹155.21 crore bank fraud, conducting search operations across Delhi and Goa.
The action, taken under a money laundering investigation involving Mahesh Timber Pvt Ltd and related entities, has led to the seizure of cash, foreign currency and a range of incriminating documents.
Zonal Enforcement Actions and Currency Seizures
The raids were carried out on May 18, 2026, by the Chandigarh Zonal Office of the ED. Multiple premises linked to the accused were searched simultaneously in Delhi and Goa. During the operation, investigators recovered approximately ₹27.75 lakh in cash and 6,000 Singapore dollars in foreign currency. Officials also seized ledger books, financial records, suspected documents and electronic devices, all of which are now being examined as key evidence.
The case originally stemmed from an FIR filed by the Central Bureau of Investigation (CBI), which alleged large-scale banking fraud and misuse of financial systems by Mahesh Timber Pvt Ltd and its directors. The FIR invoked provisions of the Indian Penal Code and the Prevention of Corruption Act. Following this, the ED initiated a parallel probe under the Prevention of Money Laundering Act (PMLA), focusing on the alleged laundering of proceeds of crime.
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SWIFT Message Alterations and FLC Manipulations
According to investigating agencies, the core of the fraud lies in alleged manipulation of Foreign Letters of Credit (FLCs). It is alleged that unauthorized amendments were made in SWIFT messages without proper banking approvals or system entries, allowing fraudulent transactions to be processed as legitimate trade payments. This manipulation is believed to have caused losses of around ₹155.21 crore to banking institutions, while total suspicious transactions in some instances are reported to have crossed ₹195 crore.
Investigators have further found indications that funds were allegedly routed abroad on the basis of forged documentation, while no actual timber imports took place. Customs verification reportedly revealed that several Bills of Entry and Bills of Lading submitted to banks were fabricated and used to justify the transactions.
Target Search Matrix and Financial Network Audits
The ED has conducted searches at premises linked to individuals including Deepak Singla, Ayush Tiwari and Amreek Singh Gill. The agency is now examining the financial network, company records and potential overseas accounts connected to the accused. Officials suspect that the network was used to move funds through multiple channels and disguise them as legitimate international trade flows.
Authorities said that the digital devices and documents seized during the raids will undergo forensic examination to reconstruct the complete fund flow and trace the money trail. ED officials have also indicated that further arrests and attachment of properties may follow as the investigation progresses.
Trade-Based Money Laundering and Systemic Verification Vaps
Experts note that cases involving trade-based money laundering and misuse of SWIFT systems have become an increasing concern for financial regulators. Such schemes often exploit gaps in banking verification processes and cross-border trade documentation, making detection more complex.
The investigation remains ongoing, with the ED attempting to identify all layers of involvement and determine the ultimate beneficiaries of the alleged fraud.
