New Delhi, 24 July (H.S.):

The Enforcement Directorate (ED) on Thursday conducted search operations at eight locations across Delhi, Uttar Pradesh and Punjab in connection with an alleged ₹450 crore bank loan fraud and money laundering case involving Santosh Overseas Limited and its associated entities.

The raids were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The investigation is being led by the ED’s Lucknow Zonal Office and is based on a bank fraud case registered by the Central Bureau of Investigation (CBI).

According to the agency, Santosh Overseas Limited allegedly obtained loans amounting to nearly ₹450 crore from a consortium of banks and later diverted and misused the funds.

During the investigation, the ED has reportedly found that the loan amount was allegedly transferred through a network of shell companies, entry operators and linked entities. The agency suspects that fake invoices and circular financial transactions were used to create multiple layers of fund movement in an attempt to conceal the alleged proceeds of crime.

The search operations are being conducted at premises linked to the company’s promoters, associated firms and individuals allegedly involved in the financial transactions under investigation.

The ED said that the searches are being carried out peacefully and further investigation into the matter is underway. The agency is examining financial records and other evidence to trace the flow of funds and identify the persons responsible for the alleged irregularities.

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Hindusthan Samachar / Jun Sarkar