The Enforcement Directorate (ED) on Friday conducted searches at eight locations across Delhi, Uttar Pradesh and Punjab in connection with its ongoing investigation into an alleged case. $A Rs 450-crore money laundering case against Santosh Overseas Ltd and its associated entities.
Raids are being conducted at buildings associated with the company’s promoters, associated entities and facilitators since early morning in close coordination with security forces.
Read also | $348cr Fake CLU Scam: ED challan names Mohali realtor as ‘mastermind’> $348cr Fake CLU scam: ED challan names Mohali realtor as ‘mastermind’
The Lucknow Zonal Office of the Enforcement Directorate is conducting the searches under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED probe stems from a Central Bureau of Investigation (CBI) case of alleged bank fraud involving approx $Rs 450 crore has been availed from the consortium of banks.
“The investigation revealed that the loan funds were transferred and distributed through a network of shell entities, accommodation entry operators and related companies via fake invoices and circular financial transactions,” officials familiar with the investigation said.
Read also | ED secures access to CBI records in 2004 money laundering investigation
They added that the search operation is going smoothly and that further investigations are underway.
Earlier, the Enforcement Directorate (ED) on Friday conducted searches at eight places in Bihar, Delhi and Rajasthan in the case of alleged illegal sand mining carried out by Bihar-based Mahadev Enclave Pvt Ltd, controlled by one of the Chandak family of Sri Ganganagar in Rajasthan, headed by Ashok Chandak and his son Raghav Chandak.
The raids continued since the morning, covering one area each in Banka and Patna in the state of Bihar, one in Delhi and the National Capital Region, in addition to four points in Sri Ganganagar and one in Jaipur.
Read also | Lalit Modi eyes India’s comeback after court overturns ED sanctions
The Patna district office of the ED is conducting a search under Section 17 of the PMLA in the case. During the investigation, evidence was collected that Mahadev Enclave Pvt Ltd carried out illegal mining on a large scale and this was not reported or noticed by the state mining department, officials said.
