In an investigation into money laundering connected to a suspected bank fraud, the Directorate of Enforcement (ED) raided ten places in Uttar Pradesh, Madhya Pradesh, and Haryana on Friday. Among these locations was the home of Samajwadi Party leader Vinay Shankar Tiwari. In the instance of the suspected bank fraud involving Gangotri Enterprises Limited, the federal agency’s Lucknow zone in Uttar Pradesh is carrying out the search operations in accordance with section 17 of the Prevention of Money Laundering Act (PMLA). The business is involved in road construction, toll plaza operations, and government contracts. Vinay Shankar Tiwari, Rita Tiwari, and Ajeet Pandey are the group’s primary promoters.
According to sources, the raids were conducted at 10 premises linked to the accused persons involved in the case in Uttar Pradesh’s Lucknow, Gorakhpur and Noida, Gujarat’s Ahmedabad and Gurugram in Haryana.
The searches are still underway, the sources said.
In November, the ED had attached 27 immovable properties worth Rs 72.08 crore in Lucknow, Maharajganj and Gorakhpur districts belonging to accused promoters, directors and guarantors of Gangotri Enterprises Ltd under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The properties that were attached at that time, according to the agency, belonged to Vinay Shankar Tiwari, the son of late Uttar Pradesh cabinet minister Hari Shankar Tiwari and a former member of parliament representing Gorakhpur’s Chillupar seat. His family members and relatives also served as directors, promoters, and guarantors of the company. Based on the First Information Report against Gangotri Enterprises Ltd. and its promoters, directors, and guarantors that the Central Bureau of Investigation, AC-V, New Delhi, had registered, the ED started its investigation. The investigation found that Gangotri Enterprises Ltd. fraudulently obtained credit facilities totaling Rs. 1,129.44 crore from a group of seven banks headed by the Bank of India, working in concert with its promoters, directors, and guarantors.
It was further revealed that the said credit facilities were not repaid and grossly diverted and misappropriated by Gangotri Enterprises Ltd. and its promoters, directors and guarantors in violation of banking norms causing wrongful loss to the tune of Rs 754.24 crore to the consortium of banks.
