ED raids multiple states in ₹450-crore bank loan fraud probe against Santosh Overseas
The Enforcement Directorate (ED) conducted searches at eight locations across Uttar Pradesh, Delhi, and Punjab on Friday as part of a money-laundering investigation linked to an alleged ₹450-crore bank loan fraud. The action, carried out under the Prevention of Money Laundering Act (PMLA), targeted the premises of Santosh Overseas Limited, its promoters, and associated entities, according to officials from the central agency.
The ED's probe stems from a case registered by the Central Bureau of Investigation (CBI) concerning a loan of ₹450 crore taken from a consortium of banks. The agency alleges that the loan funds were siphoned off through a network of shell companies, accommodation entry operators (hawala dealers), and related firms using fake invoices and circular financial transactions to layer and divert the money.
Officials stated that the Lucknow zonal office of the ED conducted the raids, which covered residential and business premises linked to the company and its directors. Detailed records and digital evidence were reportedly seized during the searches.
The case highlights ongoing efforts by enforcement agencies to investigate financial irregularities involving large-scale bank loans. The ED's investigation aims to trace the proceeds of crime and identify any further beneficiaries of the alleged fraud.
The accused are expected to be summoned for questioning as the probe progresses. No arrests have been reported so far in connection with the case.
