ED seizes ₹67.50 lakh cash in Goa's ₹17 crore bank fraud probe
Synopsis
The ED's Panaji Zonal Office raided six premises in Goa, seizing ₹67.50 lakh cash and incriminating documents tied to a ₹17 crore bank fraud. The alleged scheme involved a shell firm, forged stock statements, and the same properties mortgaged to at least six banks simultaneously — a textbook multi-layered money laundering operation.
Key Takeaways
The ED seized ₹67.50 lakh in cash and incriminating documents during searches at six premises in Goa on 8 May 2025 .
The probe targets Crown Mineral Trading Corporation (CMTC) and its partners in a bank fraud exceeding ₹17 crore .
CMTC allegedly had no real business; loans from Canara Bank were diverted to partners' personal accounts using forged stock statements.
The same mortgaged properties were used to fraudulently obtain ₹10.02 crore in additional loans from five other banks.
The ED had earlier provisionally attached properties worth ₹2.86 crore belonging to CMTC's partners under the PMLA .
The Enforcement Directorate (ED) seized ₹67.50 lakh in cash, incriminating documents including property sale deeds, and digital devices during searches at six premises in Goa on 8 May 2025, in connection with a bank loan fraud exceeding ₹17 crore. The searches, conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, targeted premises linked to Crown Mineral Trading Corporation (CMTC) and its partners.
What the Searches Uncovered
The ED's Panaji Zonal Office carried out the search operations and recovered cash, property sale deeds, and digital devices. According to the agency's official statement, the seized materials are expected to aid the ongoing money laundering investigation. The probe was initiated on the basis of an FIR registered by the CBI (ACB), Goa, against the partners of CMTC and others.
The Bank Fraud Explained
The FIR was lodged pursuant to a complaint filed by Canara Bank, alleging that the partners of CMTC — a firm purportedly engaged in trading of raw iron ore — fraudulently obtained a credit facility of ₹7 crore from Canara Bank's Madgaon Branch. Due to default in repayment, the loan account was classified as a Non-Performing Asset (NPA) with an outstanding balance of ₹6.19 crore.
ED's investigation revealed that CMTC had no actual business operations. Loans taken from Canara Bank were allegedly diverted to the personal bank accounts of its partners. Forged yearly stock statements were reportedly submitted to Canara Bank to ensure the renewal and continuation of the cash credit limit.
Multiple Banks Defrauded Through Same Properties
In a further layer of the alleged fraud, the ED found that properties mortgaged with Canara Bank were simultaneously kept mortgaged with multiple other banks — including Madgaum Urban Co-operative Bank, Central Bank of India, Indian Bank, Karnataka Bank, and Bank of Baroda — to fraudulently obtain additional loans totalling ₹10.02 crore. The accused allegedly executed multiple sale deeds for the same properties and furnished different sets of these deeds to different banks to secure credit facilities, thereby concealing and projecting the proceeds of crime as untainted funds.
Earlier Attachments and Current Status
This is not the first enforcement action in the case. The ED had previously provisionally attached properties valued at ₹2.86 crore belonging to the partners of CMTC under the PMLA. The latest searches mark an escalation in the probe, with investigators now in possession of digital evidence and property documents that could further establish the money trail. Further action under the PMLA is expected as the investigation progresses.
Point of View
Real-time property lien registry in India. Six banks lent against the same collateral without knowing the others existed, which points to a systemic gap in due diligence protocols rather than just individual criminal ingenuity. The ED's provisional attachment of only ₹2.86 crore against a ₹17 crore fraud also underscores how asset recovery in Indian money laundering cases routinely lags the scale of the offence. Until banks are mandated to cross-verify mortgage status through a unified national registry, this template of fraud will keep recurring.
NationPress
10 May 2026
Frequently Asked Questions
What is the Goa bank fraud case the ED is investigating?
The ED is investigating a bank loan fraud exceeding ₹17 crore involving Crown Mineral Trading Corporation (CMTC) and its partners. CMTC allegedly had no real business and fraudulently obtained loans from Canara Bank and five other lenders by mortgaging the same properties multiple times.
How much cash did the ED seize during the Goa searches?
The ED seized ₹67.50 lakh in cash, along with incriminating documents including property sale deeds and digital devices, during searches at six premises in Goa on 8 May 2025.
Which banks were defrauded in the CMTC case?
At least six banks were allegedly defrauded: Canara Bank, Madgaum Urban Co-operative Bank, Central Bank of India, Indian Bank, Karnataka Bank, and Bank of Baroda. The accused mortgaged the same properties with multiple lenders to obtain a combined ₹17 crore in loans.
What action has the ED taken so far in this case?
The ED previously provisionally attached properties worth ₹2.86 crore belonging to CMTC's partners under the PMLA. The latest searches, yielding cash and documents, mark a further escalation of the investigation.
Under what law is the ED conducting this investigation?
The ED is investigating the case under the Prevention of Money Laundering Act (PMLA), 2002, based on an FIR originally registered by the CBI (ACB), Goa, following a complaint by Canara Bank.
