ED Conducts Raids on Ex-BSP Legislator's Properties in Connection with ₹1,500 Crore Bank Fraud
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Synopsis
In a major crackdown, the Enforcement Directorate (ED) has conducted simultaneous raids targeting properties linked to former BSP legislator Vinay Shankar Tiwari over a ₹1,500 crore bank fraud, uncovering substantial evidence of financial misconduct and fraudulent activities.
Key Takeaways
- ED raids multiple cities for a ₹1,500 crore fraud.
- Properties of ex-BSP legislator Vinay Shankar Tiwari searched.
- Multiple digital devices and incriminating documents seized.
- Allegations of loan diversion and money laundering.
- Investigation initiated post CBI FIR.
New Delhi, April 7 (NationPress) In a series of coordinated raids across multiple cities, the Enforcement Directorate (ED) on Monday targeted properties belonging to former BSP legislator Vinay Shankar Tiwari in Mumbai, Delhi, and at least nine other sites in Uttar Pradesh concerning a ₹1,500 crore bank loan fraud, according to officials.
The search encompassed the offices of Gangotri Enterprises Limited, a company associated with Tiwari, at five locations in Lucknow along with one each in Gorakhpur, Noida, Sitapur, and Maharajganj, in addition to Delhi and Mumbai.
The operations led to the confiscation of numerous digital devices, several incriminating documents, and information regarding various movable and immovable assets, stated an official.
Tiwari’s firm, which is already under investigation by the CBI for corruption, is alleged to have misappropriated and laundered ₹1,500 crore received as loans from a bank consortium.
Additionally, Gangotri Enterprises Limited is accused of presenting forged documentation to secure loans, as per official sources.
Tiwari, who has previously served as a BSP legislator, later transitioned to the Samajwadi Party. He is the son of the late influential figure and former UP minister Hari Shankar Tiwari.
In February 2024, the ED executed search operations at ten locations across Lucknow, Gorakhpur, Noida, Ahmedabad, and Gurgaon as part of the investigation into the alleged bank fraud by Gangotri Enterprises Limited and others, under the Prevention of Money Laundering Act (PMLA).
During those searches, the ED investigators examined residential and commercial properties belonging to Tiwari, along with other directors and contractors of GEL, to trace and uncover the proceeds of crime.
The investigation by the ED was initiated after the CBI filed an FIR over the alleged bank fraud involving GEL amounting to ₹754 crore, in collusion with its directors, promoters, and guarantors.
The findings from the ED investigation indicated that the loan funds were misappropriated and diverted, leading to wrongful losses for the bank consortium as they were siphoned off to various related entities controlled by Tiwari and his family members.
Many of his relatives hold positions as directors, shareholders, or guarantors within M/s GEL. A provisional attachment order was issued in November 2023, seizing properties valued at ₹72.08 crore.
During last year's searches, the ED discovered that funds were misdirected under the pretense of investments and interest-free loans, with advances given to its affiliated companies by GEL.
Some high-value properties were also allegedly transferred to benami/paper entities without compensation when the loan account became a non-performing asset (NPA).
