New Delhi: The Enforcement Directorate (ED) executed searches across eight locations in Delhi, Punjab, and Uttar Pradesh on Friday morning in connection with a major money-laundering investigation into an alleged Rs 450-crore bank loan fraud. Officials confirmed that the search operations were spearheaded by the central agency’s Lucknow zonal office, targeting premises linked to Santosh Overseas Limited, its primary promoters, and associated commercial entities.
The enforcement action was initiated under the provisions of the Prevention of Money Laundering Act (PMLA). The financial probe originates from a predicate offense previously registered by the Central Bureau of Investigation (CBI), which alleged that the firm defrauded a consortium of banks by fraudulently securing and misusing credit facilities totaling Rs 450 crore.
According to federal investigators, the company diverted and layered the borrowed funds through an elaborate network of shell companies, accommodation entry providers, and hawala operators. The agency alleges that the entity utilized bogus invoices and circular financial transactions to siphon off the loan capital into related accounts.
