Money Laundering – ED Conducts Multi-State Raids in Rs 450 Crore Bank Fraud Investigation
Money Laundering – The Enforcement Directorate (ED) intensified its investigation on Friday by carrying out coordinated search operations at multiple locations linked to an alleged bank fraud and money laundering case involving nearly Rs 450 crore.
The Enforcement Directorate conducted searches at eight premises spread across Delhi, Uttar Pradesh and Punjab as part of its ongoing probe against Santosh Overseas Ltd and several associated entities. The action began early in the morning with support from security personnel, targeting locations connected to the company’s promoters, business associates and individuals believed to have facilitated the alleged financial transactions.
Investigation Linked to Bank Fraud Case
The search operation is being led by the ED’s Lucknow Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. According to officials, the investigation originates from a Central Bureau of Investigation (CBI) case concerning an alleged bank fraud involving loans worth around Rs 450 crore obtained from a consortium of banks.
Authorities are examining whether the borrowed funds were diverted instead of being used for their intended purpose. Investigators suspect that the money was routed through a complex network of shell companies and related business entities in an effort to conceal the movement of funds.
Alleged Use of Shell Companies
Officials associated with the investigation said preliminary findings indicate that the loan amount was allegedly layered through accommodation entry operators and multiple interconnected firms. The suspected transactions were reportedly supported by fabricated invoices and circular financial dealings designed to disguise the origin and destination of the funds.
The agency believes these financial arrangements may have been used to mask the diversion of bank loans. However, the investigation remains in progress, and authorities are continuing to gather evidence to establish the complete flow of funds and identify all individuals or entities involved.
Search Operations Continue
According to officials, the search proceedings have been progressing without disruption since the morning. The ED has not yet disclosed whether any documents, electronic records or other materials have been seized during the ongoing operation. Further action will depend on the evidence collected during the searches and subsequent examination by investigators.
Separate ED Action Targets Alleged Illegal Sand Mining
In a separate development on the same day, the Enforcement Directorate also launched search operations in connection with an alleged illegal sand mining case involving Bihar-based Mahadev Enclave Pvt Ltd. The company is reportedly controlled by members of the Chandak family from Sri Ganganagar in Rajasthan, including Ashok Chandak and his son, Raghav Chandak.
The raids covered eight locations across Bihar, Delhi and Rajasthan. Search teams visited one location each in Banka and Patna, one site in Delhi and the National Capital Region, four premises in Sri Ganganagar and another location in Jaipur.
Probe Being Conducted Under PMLA
The Patna Zonal Office of the Enforcement Directorate is handling the investigation under Section 17 of the Prevention of Money Laundering Act. Officials involved in the case stated that evidence collected during the inquiry indicates that Mahadev Enclave Pvt Ltd allegedly carried out large-scale illegal sand mining activities. Investigators also suspect that these operations were either not reported to or remained undetected by the state’s mining department.
The agency continues to investigate both matters independently as it seeks to determine the financial trail, identify any proceeds of crime and establish accountability under the applicable provisions of the law.