ED raids 11 locations in Rs 290 crore bank fraud probe

The Enforcement Directorate conducted a major search operation on September 3, raiding at least 11 locations in West Bengal and Jharkhand as part of a money laundering investigation into an alleged Rs 290 crore bank loan fraud. The raids, which began on the night of September 2 and continued into Thursday, targeted the homes and offices of directors and officials linked to a private company accused of diverting loan funds. According to officials, the investigation centers on a company that secured a Rs 290 crore bank loan under the pretext of constructing a 66 MW power plant in Jharkhand. The agency alleges the funds were subsequently siphoned off to accounts of various fake companies and used for personal purposes. The company reportedly approached the National Company Law Tribunal, and only Rs 7 crore could be recovered during liquidation, resulting in significant losses for creditors. The searches were concentrated in Kolkata and Howrah, with teams seizing documents from a multistorey residence in Howrah. Officials stated the operation was being conducted under the Prevention of Money Laundering Act.