₹155 crore bank fraud: ED arrests Mahesh Timber official over fake Singapore timber imports
Synopsis
The ED's arrest of Mahesh Timber's Deepak Singla exposes a sophisticated cross-border fraud: fabricated Singapore timber shipments, forged Bills of Lading, and unauthorised SWIFT amendments that drained ₹155 crore from Oriental Bank of Commerce and consortium banks — with a web of shell firms on both sides of the border allegedly built to make it all look real.
Key Takeaways
ED arrested Deepak Singla of Mahesh Timber Pvt Ltd on 18 May 2026 under PMLA, 2002 .
The alleged fraud caused a wrongful loss of approximately ₹155.21 crore to Oriental Bank of Commerce and consortium banks.
Approximately ₹195.02 crore was reportedly transferred through manipulated Foreign Letters of Credit (FLCs) without genuine timber imports.
Customs authorities confirmed that a substantial number of Bills of Entry and Bills of Lading submitted to banks were forged.
Searches across Delhi and Goa yielded unaccounted cash of ₹27.75 lakh and 6,000 Singaporean Dollars , along with incriminating documents.
A nexus of firms in India and Singapore — including Amazon Exports Pte Ltd and BVM Shipping PTE Ltd — were allegedly used to simulate fake imports.
The Directorate of Enforcement (ED) has arrested Deepak Singla, a key official of Mahesh Timber Pvt Ltd, in connection with an alleged ₹155 crore bank fraud involving fabricated timber imports from Singapore through manipulated Foreign Letters of Credit (FLCs). The arrest, made on 18 May 2026 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, was confirmed by the ED's Chandigarh Zonal Office on Friday.
The Arrest and Remand
Following his arrest, transit remand for Deepak Singla was obtained from Rouse Avenue Court, Delhi, after which a 6-day remand was secured from the Special PMLA Court, Panchkula. Singla was subsequently sent to judicial custody for 14 days on 26 May 2026, according to the ED. The agency initiated its investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI), Banking Securities and Fraud Branch, New Delhi, against Mahesh Timber, its directors, and associated persons for offences under the Indian Penal Code (IPC), 1860 and the Prevention of Corruption Act.
How the Fraud Was Allegedly Carried Out
The case centres on the fraudulent enhancement of FLCs through unauthorised SWIFT amendments made without corresponding entries in the Finacle banking system — causing a wrongful loss of approximately ₹155.21 crore to Oriental Bank of Commerce and its consortium banks. According to the ED, Mahesh Timber, in alleged conspiracy with associated entities in India and Singapore, fraudulently transferred approximately ₹195.02 crore through manipulated FLCs without any genuine import of timber taking place.
Customs authorities verified that a substantial number of Bills of Entry and Bills of Lading submitted to the banks were forged and fabricated, the ED said.
The Network of Firms Involved
The ED identified a nexus of entities allegedly used to simulate the appearance of legitimate timber imports. These include Amazon Exports Pte Ltd, Mahesh Timber Singapore Pte Ltd, Traffic Media India Pvt Ltd, shipping firms BVM Shipping PTE Ltd and Pearl Maritime PTE Ltd, and Traffic Media Pvt Ltd. Together, these firms allegedly created a mirage of timber shipments from Singapore to India to manipulate Oriental Bank of Commerce into opening and transferring enhanced-value FLCs.
Singla is described as closely associated with Ashok Kumar Mittal and Raman Singhal, and held directorial or key managerial positions in Mahesh Timber, Mahesh Resources, and Traffic Media India during the relevant period. The ED also flagged the involvement of Harish Singla, who reportedly held key managerial roles in companies controlled by Mittal and allegedly provided guarantees and financial backing to Mahesh Timber.
Searches and Seizures
Search operations were conducted under Section 17 of PMLA, 2002 on 18 May 2026 at premises linked to Deepak Singla, Ayush Tiwari, Amreek Singh Gill, and others across Delhi and Goa. During these searches, authorities seized unaccounted cash of ₹27.75 lakh and 6,000 Singaporean Dollars, along with ledgers of accused firms, incriminating documents, and electronic devices.
What Comes Next
The ED's investigation remains ongoing, with the agency examining sham transactions related to the purported sale and purchase of imported timber in the absence of genuine imports. Further arrests and asset attachments cannot be ruled out as the probe into the broader network of entities and individuals deepens.
Point of View
A dimension the investigation must not sidestep. With a cross-border network spanning Singapore and multiple Indian entities, the case also raises questions about whether correspondent banking due diligence and customs verification mechanisms are fit for purpose. The ₹195 crore transferred — significantly higher than the ₹155 crore loss figure — suggests funds were layered before the fraud was detected, meaning asset recovery will be the harder test ahead.
NationPress
9 Aug 2026
Frequently Asked Questions
Who is Deepak Singla and why was he arrested?
Deepak Singla is a key official of Mahesh Timber Pvt Ltd who was arrested by the ED on 18 May 2026 under Section 19 of PMLA, 2002. He allegedly held directorial and key managerial positions in Mahesh Timber, Mahesh Resources, and Traffic Media India, and is accused of playing a prominent role in a ₹155 crore bank fraud involving fake timber imports from Singapore.
What is the ₹155 crore Mahesh Timber bank fraud case?
The case involves the fraudulent enhancement of Foreign Letters of Credit (FLCs) through unauthorised SWIFT amendments — without corresponding entries in the Finacle system — causing a loss of approximately ₹155.21 crore to Oriental Bank of Commerce and consortium banks. The fraud was allegedly concealed by fabricating Bills of Entry and Bills of Lading to simulate genuine timber imports from Singapore.
Which banks suffered losses in the Mahesh Timber fraud?
Oriental Bank of Commerce and its consortium banks were the primary victims, suffering a combined wrongful loss of approximately ₹155.21 crore, according to the ED.
What firms were part of the alleged fraud network?
The ED identified Amazon Exports Pte Ltd, Mahesh Timber Singapore Pte Ltd, Traffic Media India Pvt Ltd, BVM Shipping PTE Ltd, Pearl Maritime PTE Ltd, and Traffic Media Pvt Ltd as entities allegedly used to create the appearance of legitimate timber shipments from Singapore to India.
What was seized during the ED's search operations?
During searches conducted on 18 May 2026 at premises in Delhi and Goa linked to Deepak Singla, Ayush Tiwari, Amreek Singh Gill, and others, the ED seized unaccounted cash of ₹27.75 lakh and 6,000 Singaporean Dollars, along with ledgers, incriminating documents, and electronic devices.
