ED raids 9 locations in Kolkata, Odisha in ₹1,109 crore bank fraud case
Synopsis
The ED has raided nine locations across Kolkata and Odisha in a ₹1,109 crore bank fraud case, probing a Bhubaneswar-based company accused of inflating stock values, falsifying financial statements, and laundering loan money across state lines — the second major ED operation in Kolkata within days.
Key Takeaways
The Enforcement Directorate (ED) raided nine locations in Kolkata and Odisha on 5 October 2026 .
A Bhubaneswar-based company allegedly obtained ₹1,109 crore in bank loans through inflated stock values and falsified financial statements.
Funds were allegedly laundered from Odisha to Kolkata through multiple channels; searches focused on Posta and Burrabazar areas.
The CBI initially probed the case before the ED took over the money-laundering investigation.
A separate ED operation days earlier targeted 15 locations linked to former minister Indranil Sen over Durga Puja pass irregularities.
The Enforcement Directorate (ED) launched simultaneous search operations across nine locations in Kolkata and Odisha on Monday, 5 October 2026, targeting individuals and entities linked to an alleged ₹1,109 crore bank fraud originating from a Bhubaneswar-based company. Investigators have been conducting searches in the Posta and Burrabazar areas of Kolkata since Monday morning, according to ED sources.
Background of the Case
The case centres on a Bhubaneswar-based company that allegedly obtained loans worth ₹1,109 crore from banks through fraudulent means. Investigators allege that the company systematically inflated the value of its stock and trade receivables, falsified financial statements, and artificially boosted its commercial dues to secure the loans. The funds were subsequently embezzled, according to the ED.
Notably, the case was initially probed by the Central Bureau of Investigation (CBI), which had previously conducted its own searches in the same Posta and Burrabazar localities. The ED later took over the money-laundering dimension of the investigation, and the current raids are part of that expanded probe.
Money Trail from Odisha to Kolkata
A key allegation under investigation is that loan funds were strategically diverted from Odisha to Kolkata through multiple channels. The ED is specifically focused on tracing the source and routing of the laundered money, which investigators allege was moved across state lines to obscure its origin. The multi-state nature of the operation — spanning Odisha and West Bengal — reflects the alleged complexity of the financial web.
Pattern of Recent ED Activity in Kolkata
This is not the ED's first high-profile action in the city in recent weeks. A few days prior, the agency raided 15 locations in Kolkata and surrounding areas in connection with alleged financial irregularities in the sale of Durga Puja 'preview passes'. Those raids were linked to former state minister Indranil Sen and his wife, with searches also conducted at the residences of his relatives and close associates. Following the operation, Indranil Sen was summoned to the ED's CGO Complex office in Kolkata.
The back-to-back operations suggest a sustained focus by central agencies on financial crimes routed through the city.
What Investigators Are Looking For
According to ED sources, the current search operation aims to identify and seize documents, digital records, and other evidence that could establish the money-laundering chain. The agency is particularly examining whether loan proceeds were reinvested or layered through shell companies and trading entities in the Burrabazar commercial district — one of India's largest wholesale trading hubs — to legitimise the funds.
What Comes Next
The ED is expected to record statements from individuals identified during the searches and may issue formal summonses depending on the evidence gathered. Given the CBI's parallel investigation into the underlying fraud, coordination between the two agencies will be closely watched. Further action, including potential arrests, will depend on the material recovered during Monday's operation.
Point of View
And the fact that both the CBI and ED are now active suggests the fraud's scale warranted a dual-agency approach. The focus on inflated trade receivables is also noteworthy — it is a well-documented mechanism in bank fraud cases that auditors and lenders have repeatedly failed to flag in time. Whether the political temperature around these operations rises — as it did with the Indranil Sen raids — remains the second story to watch.
NationPress
5 Oct 2026
Frequently Asked Questions
What is the ₹1,109 crore bank fraud case in which the ED raided Kolkata?
The case involves a Bhubaneswar-based company that allegedly secured loans worth ₹1,109 crore from banks by inflating the value of its stock and trade receivables and falsifying its financial statements. The money was allegedly embezzled and laundered from Odisha to Kolkata.
Where did the ED conduct searches on 5 October 2026?
The ED conducted searches across nine locations, covering the Posta and Burrabazar areas in Kolkata as well as sites in Odisha, as part of its money-laundering investigation into the bank fraud.
Why is the ED involved if the CBI was already investigating?
The Central Bureau of Investigation (CBI) handled the initial fraud investigation, while the Enforcement Directorate took over the money-laundering angle under the Prevention of Money Laundering Act (PMLA). Both agencies can investigate different dimensions of the same case simultaneously.
What other ED action took place recently in Kolkata?
A few days before these raids, the ED searched 15 locations in Kolkata linked to alleged financial irregularities in the sale of Durga Puja 'preview passes'. Those searches were connected to former state minister Indranil Sen and his family, and Sen was subsequently summoned to the ED's CGO Complex office.
What happens next after the ED raids?
Investigators are expected to record statements from individuals identified during the searches and may issue formal summonses based on evidence recovered. Potential arrests or asset attachments would depend on the material found during Monday's operation.
