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A special court in Ghaziabad has convicted five people, including a former Syndicate Bank branch manager, for money laundering in a case involving loans allegedly sanctioned on the basis of forged property documents and later layered through bank accounts and demand drafts.
The Special Judge, Ghaziabad, convicted V.N. Mathur, Rajeev Kumar, Arvind Chaudhary, Ankit Chaudhary and Pramod Kumar on November 3, 2026, under Section 3 of the Prevention of Money Laundering Act, punishable under Section 4.
Each of the five convicts was sentenced to three years of rigorous imprisonment and fined ₹50,000. In case of default in payment of the fine, each will undergo an additional three months of simple imprisonment.
ED Probe Began From CBI Cases
The Enforcement Directorate’s Lucknow Zonal Office initiated its investigation on the basis of two FIRs registered by the CBI’s Anti-Corruption Branch in Ghaziabad.
The cases were registered following a complaint by the Chief Vigilance Officer of Syndicate Bank.
In the underlying scheduled offence, V.N. Mathur, who was then serving as branch manager, was convicted by the CBI court under provisions of the Indian Penal Code and the Prevention of Corruption Act, 1988.
Rajeev Kumar and Pramod Kumar were acquitted in that scheduled offence.
However, the ED said both were later convicted for money laundering after the special court examined the evidence and material placed on record in the PMLA case.
Loans Allegedly Sanctioned Using Forged Documents
According to the ED, the alleged fraud dates back to 2006-07, when Mathur was posted as Branch Manager at Syndicate Bank’s Gajraula branch.
The agency said Mathur entered into a criminal conspiracy with late Narendra Singh, Arvind Chaudhary and others.
As part of the alleged conspiracy, loans and overdraft limits were sanctioned to them, their firms and associates on the basis of forged sale deeds relating to non-existent properties.
The ED also alleged that false non-encumbrance certificates and fabricated valuation reports were used to support the loan applications.
These documents allegedly enabled the accused to obtain bank funds that would not otherwise have been sanctioned.
Loan Proceeds Allegedly Layered Through Accounts
The investigation found that the loan proceeds were not used for their stated purposes.
Instead, the funds were allegedly withdrawn in cash and routed through multiple savings bank accounts and demand drafts.
The ED said this layering was intended to conceal the illicit origin of the money.
The agency further alleged that the funds were eventually integrated into the financial system through the acquisition of immovable properties.
Among the properties identified were a plot at Alipur in J.P. Nagar district and another plot in Dehradun.
According to the ED, the accused knowingly acquired, possessed, used and concealed proceeds of crime and projected them as untainted property.
Two Earlier Acquitted Accused Convicted Under PMLA
One of the notable aspects of the case is the conviction of Rajeev Kumar and Pramod Kumar for money laundering despite their earlier acquittal in the scheduled offence.
The ED highlighted this distinction in its press release, stating that both accused were convicted under the PMLA after the court evaluated the evidence produced during the money laundering proceedings.
The judgment demonstrates that the money laundering prosecution was examined separately on the basis of the material presented before the special court.
Three-Year Jail Terms for All Five
The Special Judge in Ghaziabad convicted all five accused in Case No. 5/23.
Each was sentenced to three years of rigorous imprisonment along with a fine of ₹50,000.
The court also ordered that failure to pay the fine would result in three months of additional simple imprisonment.
The conviction marks the conclusion of the ED prosecution in a case involving alleged misuse of bank credit, forged property documentation, diversion of loan proceeds and investment of the resulting funds into immovable assets.
The case also underscores the ED’s focus on tracing and prosecuting the movement of funds generated through alleged banking fraud and their subsequent projection as legitimate assets.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
