FinancialFraud – ED Searches Multiple Locations in ₹155 Crore Bank Scam Investigation
FinancialFraud – The Enforcement Directorate (ED) on Tuesday conducted coordinated search operations at 11 locations across Karnal, Delhi and Goa as part of an ongoing money laundering investigation linked to an alleged bank fraud amounting to nearly ₹155 crore. According to the agency, the searches were carried out at premises associated with Ashok Mittal, Sourabh Dhingra, Bharat Bhushan Mittal, Raman Singhal and several others believed to be connected to the case.
Probe Linked to Bank Fraud Case
The investigation has been initiated under the Prevention of Money Laundering Act (PMLA) and stems from a case involving Mahesh Timber Pvt Ltd. The company came under scrutiny after a First Information Report (FIR) was registered by the Central Bureau of Investigation (CBI) under provisions of the Prevention of Corruption Act. Authorities allege that fraudulent activities caused losses of approximately ₹155.21 crore to Oriental Bank of Commerce and a group of lending banks associated with the transaction.
Among those named in the investigation is Deepak Singla, who has served as the Goa in-charge of the Aam Aadmi Party. Enforcement agencies are examining the financial transactions and business dealings connected to the company and its associates.
Allegations of Complex Business Network
According to the ED, investigators uncovered what they describe as a network of interconnected entities operating in India and Singapore. The agency alleges that Deepak Singla, his brother Raman Singhal and their maternal uncle Ashok Kumar Mittal used these entities to facilitate transactions that were later found to be questionable.
Officials claim that the company initially received approval for Foreign Letters of Credit worth ₹21.48 crore. However, the amount was allegedly increased substantially to ₹173.04 crore through the submission of forged trade-related documents. These documents reportedly included Bills of Lading, Bills of Entry, commercial agreements and other records that were presented to banks to secure enhanced credit facilities.
Questions Raised Over Import Transactions
Investigators have alleged that the imports cited in the documentation never actually took place. The ED informed a court in Panchkula during remand proceedings that findings from both the CBI and the Directorate General of Systems and Data Management under the Central Board of Indirect Taxes and Customs pointed to widespread irregularities in the paperwork.
According to the agency, a significant portion of the import-related documents examined during the investigation appeared to be fabricated or forged. These findings form a key part of the money laundering probe and are being used to trace the movement of funds and identify individuals who may have benefited from the alleged scheme.
Former Bank Official Also Under Scrutiny
The investigation has also brought attention to the role of a former senior branch manager of Oriental Bank of Commerce. The ED has alleged that Surender Kumar Ranga, who is no longer employed by the bank, verbally permitted a substantial increase in the Letters of Credit facility beyond approved limits.
Agency officials claim that this arrangement was made after assurances were allegedly given by one of the accused that he would assist the banker in settling in Singapore. Investigators are examining whether these alleged understandings influenced lending decisions and contributed to the financial losses suffered by the banking consortium.
Investigation Continues
The Enforcement Directorate has stated that the searches were conducted to gather additional evidence, identify proceeds of crime and establish the financial trail connected to the alleged fraud. Further examination of documents, digital records and financial transactions is expected as the investigation progresses.