ED Conducts Raids at 16 Sites Across Four States Linked to Bihar RJD MLA
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Patna, Jan 10 (NationPress) The Enforcement Directorate (ED) conducted raids at 16 different sites across four states concerning Rashtriya Janata Dal (RJD) MLA and former Minister Alok Mehta.
These operations relate to an alleged banking scam linked to the Vaishali Urban Cooperative Bank, where Mehta and his family have held connections for more than three decades.
The ED carried out simultaneous raids in Bihar, Kolkata (West Bengal), Delhi, and Uttar Pradesh, focusing on 16 locations associated with Alok Mehta and his affiliates. A substantial police presence has been established, and a thorough investigation is in progress, especially at Alok Mehta's official residence in Patna.
According to sources, Alok Mehta is believed to be implicated in an alleged withdrawal of around Rs 85 crore through deceitful practices, which include loans issued with fake documentation and the abuse of banking authority.
This alleged fraud has reportedly occurred over a span of 10-20 years, marked by repeated violations of banking regulations. Loans were disbursed in the names of farmers using fictitious documents, bypassing standard procedures.
Alok Mehta and his relatives are linked to two companies — Lichchhavi Cold Storage Pvt Ltd and Mahua Cooperative Cold Storage — and face accusations of embezzling Rs 60 crore.
Additionally, loans exceeding Rs 30 crore were granted based on counterfeit LIC bonds and identity documents.
Alok Mehta's father, Tulsidas Mehta, founded the Vaishali Urban Cooperative Bank 35 years ago. Alok Mehta served as the bank's chairman from 1995 to 2012, during which time the alleged irregularities reportedly began.
In 2012, Alok Mehta transferred control to his father, seemingly to dissociate himself from the ongoing controversies. The current chairman of the bank is Sanjeev Mehta, Alok Mehta’s nephew.
As a significant RJD figure and former Minister of Revenue and Land Reforms during the Grand Alliance government, Alok Mehta allegedly wielded political influence over the bank.
In 2015, similar irregularities led the RBI to halt the bank's financial operations, with allegations directed at Tulsidas Mehta. The bank received its RBI license in 1996, but political involvement is believed to have adversely affected its operations.
This situation raises concerns about the exploitation of cooperative banks by political families, the deficiencies in regulatory oversight, and the misuse of rural banking institutions for personal benefit. Should the allegations prove valid, it could result in substantial legal repercussions for Alok Mehta and his family.
