ED Conducts Raids In ₹450 Crore Bank Fraud & Money Laundering Probe

The Enforcement Directorate (ED), through its Lucknow Zonal Office, carried out search operations on Thursday under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as part of its investigation into alleged financial irregularities involving M/s Santosh Overseas Ltd. and its related entities.

The money laundering probe stems from a Central Bureau of Investigation (CBI) case concerning an alleged bank fraud of approximately ₹450 crore.

A consortium of banks reportedly sanctioned the loans, which investigators suspect the accused misused through a complex network of financial transactions.

According to the ED, its preliminary investigation found that the accused allegedly diverted and layered a substantial portion of the loan amount through shell companies, accommodation entry operators and associated entities.

Investigators believe the accused used fake invoices and circular financial transactions to conceal the movement and origin of the funds.

As part of the ongoing probe, the ED carried out simultaneous searches at eight locations across Delhi, Uttar Pradesh and Punjab.

The searches also covered premises linked to the company’s promoters, associated firms and individuals suspected of facilitating the alleged diversion of funds.

The ED said it conducted the search operations smoothly under the provisions of the Prevention of Money Laundering Act (PMLA).

Officials are examining financial records and digital evidence to trace the flow of funds and identify the beneficiaries.

The ED is investigating the alleged fraud, tracking the diverted funds and determining the role of those involved.

The ED has stated that the investigation remains underway, with further examination of the seized material expected to assist in identifying additional links and strengthening the money laundering case against the accused.