ED conducts searches across city over alleged multi-crore bank fraud cases

The Enforcement Directorate continues to probe these cases, aiming to trace the full extent of financial misappropriation and recover proceeds of crime. Officials have stated that further legal actions, including asset seizures and arrests, may follow based on the findings

Mumbai: The Mumbai unit of the Enforcement Directorate (ED) conducted extensive search operations across the city on Thursday in connection with its ongoing investigations into two major bank fraud cases. The cases involve private firms and individuals accused of money laundering and financial misconduct.

ED conducts searches across city over alleged multi-crore bank fraud cases

The first case pertains to an alleged bank fraud amounting to ₹142.72 crore. The ED conducted searches at 12 locations in Mumbai, leading to the seizure and freezing of details related to immovable and movable assets.

The investigation revolves around two firms, Rialto Exim Pvt Ltd and Pushpak Bullion Pvt Ltd, along with other accused individuals, including Chandrakant Patel. During the raids, ED officials seized several documents, bank funds, and details of assets linked to the accused entities.

The money laundering probe was initiated following a case registered by the Central Bureau of Investigation (CBI), Mumbai, against Rialto Exim Pvt Ltd and others. The charges include violations of the Indian Penal Code and the Prevention of Corruption Act, alleging that the accused defrauded the Central Bank of India and Bank of India.

According to ED’s findings, Rialto Exim Pvt Ltd is linked to the Pushpak Group and was allegedly engaged in circular transactions with various related entities without any genuine trade activity. The quantum of such transactions exceeded ₹500 crore, suggesting large-scale financial manipulation.

Additionally, the ED uncovered evidence pointing to transactions with dummy entities based in Dubai and the purchase of a mine in the United States by a foreign entity of the Pushpak Group. Investigators also found that more than ₹84 crore was deposited in bank accounts associated with the Pushpak Group during the demonetisation period, raising further concerns about financial irregularities.

In the second case, the ED’s Mumbai unit conducted search operations at eight locations in Mumbai, targeting an alleged ₹93 crore bank fraud. The searches resulted in the seizure of multiple documents related to the acquisition of immovable properties, allegedly purchased using funds obtained through fraudulent means.

This case involves One World Creations Private Limited (OCPL) and other accused entities. The ED initiated the probe based on a CBI-registered case following a complaint by UCO Bank. The bank alleged that OCPL and its directors conspired to defraud a consortium of banks by inflating turnovers in shell companies through circular trading, thereby securing wrongful financial gains.

ED investigators discovered that OCPL’s promoters engaged in extensive circular transactions among shell entities to layer and disguise illicit funds. These funds were subsequently utilised to acquire immovable assets.

The Enforcement Directorate continues to probe these cases, aiming to trace the full extent of financial misappropriation and recover proceeds of crime. Officials have stated that further legal actions, including asset seizures and arrests, may follow based on the findings.