The Enforcement Directorate (ED) has conducted searches at eight locations across Uttar Pradesh, Delhi, and Punjab as part of a money laundering investigation into an alleged ₹450 crore bank loan fraud. The operation, carried out by the ED’s Lucknow Zonal Office, targets Santosh Overseas Limited, its promoters, and associated entities. This action is being conducted under the Prevention of Money Laundering Act (PMLA).
The ED’s probe originates from a Central Bureau of Investigation (CBI) case concerning an alleged fraud involving a ₹450 crore loan obtained from a consortium of banks. Investigators allege that the loan funds were diverted and laundered through a network of shell companies, accommodation entry operators, and related entities. This was allegedly achieved through the use of fake invoices and circular financial transactions, designed to obscure the origin and destination of the funds.
Sources privy to the investigation stated that the search operations were conducted smoothly. The ED is examining whether the alleged diversion of funds constitutes money laundering under Indian law and is working to identify the ultimate beneficiaries of the funds. The investigation is ongoing, with further inquiries underway.
The Chenab Times News Desk