Did ED Conduct Searches Linked to Odisha-Based Firm in Fake Bank Guarantee Racket?
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Synopsis
The ED has launched a significant investigation into an Odisha-based company's involvement in a fraudulent bank guarantee scheme, uncovering shocking details about their operations and connections. This ongoing case raises questions about the integrity of financial guarantees in the region.
Key Takeaways
- The Enforcement Directorate has initiated a significant investigation into a fraudulent bank guarantee case.
- M/s Biswal Tradelink Pvt. Ltd. has been linked to multiple suspicious financial transactions.
- The company is suspected of facilitating fake bank guarantees for a commission.
- ED officials discovered no legitimate company records at the registered office.
- The use of spoofed email domains indicates the extent of deception involved.
Bhubaneswar, Aug 1 (NationPress) The Enforcement Directorate (ED) executed searches at various locations associated with the Odisha-based company, M/s Biswal Tradelink Pvt. Ltd., and its directors in Bhubaneswar and Kolkata regarding a fraudulent bank guarantee scheme.
According to sources from the ED, these actions were initiated following a case (0131/2024) registered by the Economic Offence Wing (EOW), Delhi on November 11, 2024. The central agency has filed an ECIR and commenced an investigation into the fake bank guarantee operation.
The ED officials were conducting searches under Section 17 of the Prevention of Money Laundering Act (PMLA) at three sites linked to M/s Biswal Tradelink Pvt. Ltd. and its directors in Bhubaneswar, as well as one site related to an associate of the firm in Kolkata.
It is important to highlight that the central agency discovered that M/s Biswal Tradelink Pvt. Ltd., its directors, and associates were involved in the issuance of fraudulent bank guarantees for an 8 percent commission. Investigators also found that the accused group had facilitated fake billing for commission.
The ED officials uncovered suspicious financial activities amounting to crores of rupees in various undisclosed bank accounts belonging to the fraudulent company.
“This company is merely a shell entity -- its registered office is located in a residential property owned by a relative. No official company records were located at the address. Numerous suspicious financial transactions with various companies have been traced. Key members of the group are reportedly using the Telegram application with 'disappearing messages' enabled, indicating efforts to hide communications,” ED sources noted.
In a related development, during the searches on July 24 concerning Anil Ambani group companies, the ED had previously seized evidence directly related to the ongoing investigation.
Notably, a bank guarantee of Rs 68.2 crore submitted to the Solar Energy Corporation of India Limited (SECI) by M/s Biswal Tradelink Pvt. Ltd. on behalf of M/s Reliance NU BESS Limited (previously known as M/s Maharashtra Energy Generation Limited), a subsidiary of Reliance Power Limited (RPL), has been identified as fraudulent.
“In an effort to validate this fake bank guarantee, the group utilized a spoofed email domain. To create a semblance of authenticity -- instead of sbi.co.in, the domain s-bi.co.in was used to send counterfeit communications to SECI, impersonating SBI.
The ED has requested domain registration details of s-bi.co.in from the National Internet Exchange of India (NIXI),” ED sources added.
Point of View
The investigation led by the Enforcement Directorate into the fraudulent activities of M/s Biswal Tradelink Pvt. Ltd. exemplifies the ongoing efforts to combat economic crimes in India. As the nation grapples with financial integrity, this case serves as a reminder of the importance of transparency and accountability within the financial sector.
NationPress
20/08/2025
Frequently Asked Questions
What is the Enforcement Directorate (ED)?
The Enforcement Directorate (ED) is a law enforcement agency in India that investigates financial crimes such as money laundering and foreign exchange violations.
What is a fake bank guarantee?
A fake bank guarantee is a fraudulent document that falsely claims a bank's assurance of payment, often used to deceive other parties in financial transactions.
How did the ED uncover the fake bank guarantee racket?
The ED uncovered the racket through investigations initiated from a case registered by the Economic Offence Wing (EOW) and subsequent searches revealing suspicious financial activities.
