Enforcement Directorate Conducts Multi-State Searches in ₹155.21 Crore Bank Fraud and Money Laundering Investigation

The Enforcement Directorate (ED) on Tuesday conducted a series of search operations across 11 locations in Delhi, Haryana, and Goa as part of an ongoing money laundering investigation linked to an alleged bank fraud that reportedly caused losses of approximately ₹155.21 crore to Oriental Bank of Commerce and a consortium of lending institutions. According to officials familiar with the case, the coordinated enforcement action was undertaken by the ED’s Chandigarh Zonal Office and targeted premises allegedly associated with several individuals, including Ashok Mittal, Sourabh Dhingra, Bharat Bhushan Mittal, Raman Singhal, and others connected to the investigation involving Mahesh Timber Pvt Ltd.

The searches were carried out at multiple locations in Haryana’s Karnal district as well as in Delhi and Goa, with investigators seeking evidence related to the alleged financial irregularities under examination. The operation forms part of a broader probe into suspected money laundering activities linked to the company and its directors, following allegations of fraudulent banking transactions that resulted in substantial financial losses for lending institutions.

The ED’s investigation originates from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) against Mahesh Timber Pvt Ltd, its directors, and other individuals. The FIR alleges violations under various provisions of the Indian Penal Code (IPC) as well as the Prevention of Corruption Act. Based on the findings and allegations outlined in the CBI case, the ED initiated proceedings under anti-money laundering laws to trace and identify the movement and utilization of funds linked to the alleged fraud.

According to the Enforcement Directorate, the accused parties are suspected of having fraudulently enhanced Foreign Letters of Credit (FLCs) through alleged unauthorized amendments made via the SWIFT messaging system. Investigators allege that these modifications were carried out without corresponding entries being recorded in Finacle, the banking software platform used for maintaining official transaction records. Authorities contend that this discrepancy enabled the manipulation of financial instruments in a manner that resulted in a wrongful loss of approximately ₹155.21 crore to Oriental Bank of Commerce and the consortium banks involved.

Officials stated that the search operations began early Tuesday morning and were executed in close coordination with local law enforcement agencies. The raids were reportedly based on specific intelligence inputs and investigative findings concerning individuals named in the case. Authorities continue to examine documents, digital records, financial transactions, and other materials recovered during the searches as part of efforts to establish the full extent of the alleged fraud and determine the flow of funds associated with the suspected money laundering activities.

The investigation remains ongoing, with enforcement agencies focusing on uncovering the financial trail behind the alleged unauthorized banking transactions and identifying any assets or proceeds believed to be connected to the purported criminal activity. The ED is expected to continue its examination of evidence gathered during the searches as it advances its probe into the alleged bank fraud and associated money laundering offenses.

By fLEXI tEAM