Money laundering case: ED searches 10 locations of SP leader Vinay Shankar Tiwari in 3 states

Earlier on November 17, 2023, the ED had attached 27 immovable properties worth ₹72.08 crore in Lucknow, Maharajganj and Gorakhpur districts belonging to Tiwari and his family members

The Enforcement Directorate (ED) on Friday carried out searches at 10 locations in three states linked to former MLA and Samajwadi Party (SP) leader Vinay Shankar Tiwari in connection with a money laundering case against him.

The ED officials said the PMLA case was registered based on the FIR registered by the central bureau of investigation (CBI) against Tiwari’s firm and its promoters and directors for fraudulently availing credit facilities to the tune of ₹1129.44 crore. (For Representation)

These included one location in Gorakhpur and five in Lucknow, two locations in Noida in Uttar Pradesh and one location each in Gurugram in Haryana and Ahmedabad in Gujarat. The ED seized several incriminating documents related to the case during the multiple hours search. It questioned Tiwari’s brother Bheema Shankar Tiwari at the residence of their family in Gorakhpur.

Earlier on November 17, 2023, the ED had attached 27 immovable properties worth ₹72.08 crore in Lucknow, Maharajganj and Gorakhpur districts belonging to Tiwari and his family members, who were promoters, directors and guarantors of M/S Gangotri Enterprises Ltd under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Vinay Shankar Tiwari, who had won the Chillupar seat in Gorakhpur in the 2017 assembly polls on a BSP ticket, is the son of the late U.P. cabinet minister Hari Shankar Tiwari. He unsuccessfully contested the 2022 assembly polls from the same seat on an SP ticket.

The ED officials said the PMLA case was registered based on the FIR registered by the central bureau of investigation (CBI) against Tiwari’s firm and its promoters and directors for fraudulently availing credit facilities to the tune of ₹1129.44 crore from consortium of seven banks led by the Bank of India.

They said the said credit facilities were not repaid and grossly diverted and misappropriated by Tiwari’s firm and its directors in violation of banking norms causing wrongful loss to the tune of ₹754.24 crore to the consortium of banks.

Sharing further details, the ED officials said the search was carried out at Tiwari’s house in Lucknow’s Mahanagar area where his associates were found. They said the ED team had to wait for around an hour there as Tiwari’s associates did not open the gate.

Similarly, a search was carried at Tiwari’s house in Gorakhpur’s Dharamshala Bazar, popularly known as Tiwari ji Ka Hata. The ED team along with paramilitary personnel reached the residence of former MLA early on Friday morning and carried out search for around five hours. Hundreds of Tiwari’s supporters gathered near his residence but no one was allowed to enter the premises.

The ED team examined the papers of Gangotri Enterprises Ltd along with GSP Construction and Kandarp Construction as they had obtained funds with credit facilities and funds were not repaid.