Did the ED Just Arrest an Odisha Firm's MD in a Fake Bank Guarantee Scam?
Click to start listening
Synopsis
The **Enforcement Directorate** has made a significant arrest in Odisha, targeting a firm involved in a **massive fake bank guarantee scam**. This case raises serious questions about corporate governance and accountability in the financial sector.
Key Takeaways
- The ED arrested the MD of BTPL related to a fake bank guarantee scheme.
- Fraudulent bank guarantees of Rs 68.2 crore were involved.
- BTPL's operations raised red flags due to undisclosed bank accounts.
- Evidence of document forgery was uncovered during the investigation.
- Several violations of the Companies Act were noted in BTPL's practices.
Bhubaneswar, Aug 2 (NationPress) In a series of extensive searches across multiple cities, the Enforcement Directorate (ED) has apprehended the Managing Director (MD) of an Odisha-based firm linked to a fraudulent bank guarantee scheme, as confirmed by an official on Saturday.
Partha Sarathi Biswal, MD of M/s Biswal Tradelink Private Limited (BTPL), was taken into custody on Friday following searches conducted in Bhubaneswar and Kolkata at various locations associated with the company, according to an official statement.
Post-arrest, Biswal has been placed in ED custody, the statement noted.
The ED initiated an investigation into the fake bank guarantee scam after lodging an Enforcement Case Information Report (ECIR) based on a case filed by Delhi's Economic Offences Wing (EOW) on November 11, 2024.
The case targets BTPL, its directors, and others for presenting counterfeit bank guarantees to the Solar Energy Corporation of India Limited (SECI).
Investigations by the ED uncovered that BTPL illicitly procured and submitted fake bank guarantees amounting to Rs 68.2 crore with forged endorsements from SBI and counterfeit confirmations for a SECI tender.
In exchange for these guarantees, BTPL allegedly received Rs 5.40 crore from Reliance Power, as mentioned in the ED's statement.
Evidence has surfaced indicating the utilization of falsified documents in the names of various banks and fraudulent email addresses resembling those of SBI, the investigative agency reported.
Furthermore, the probe reveals that BTPL, a small entity established in 2019, held several undisclosed bank accounts and executed transactions that were disproportionate to its reported revenue.
The ED highlighted numerous violations of the Companies Act, noting the absence of statutory records at the registered address, including books of accounts and shareholder registers. The statement also indicated that dummy directors were employed solely for signing documents.
At least seven undisclosed bank accounts belonging to the company were uncovered, with proceeds of crime amounting to crores of rupees traced to these accounts.
Sources revealed that during the investigation, the central agency discovered that BTPL, its directors, and associates were involved in issuing fake bank guarantees for a commission of eight percent.
Point of View
I believe this incident underscores the urgent need for enhanced regulatory oversight in the corporate sector. The arrest of the MD of BTPL highlights the persistent challenges we face in combating fraud and ensuring the integrity of financial institutions. It is essential that we uphold accountability to protect stakeholders and maintain public trust.
NationPress
08/10/2025
Frequently Asked Questions
What led to the arrest of the MD of BTPL?
The MD was arrested following investigations by the ED into a fake bank guarantee scam, which involved the submission of counterfeit bank guarantees to SECI.
What were the financial implications of the scam?
The scam involved fake bank guarantees amounting to Rs 68.2 crore, and BTPL allegedly received Rs 5.40 crore from Reliance Power in connection with these guarantees.
What violations were discovered during the investigation?
The investigation revealed multiple violations of the Companies Act, including the absence of statutory records and the use of dummy directors.
How many undisclosed bank accounts were found?
At least seven undisclosed bank accounts were discovered, with substantial proceeds of crime traced to these accounts.
What role did the Economic Offences Wing play in this case?
The Economic Offences Wing registered a case that led to the ED's investigation and subsequent arrest.
