ED Conducts Searches in Delhi, UP, Punjab Over ₹450 Crore Loan Fraud

The Enforcement Directorate (ED) on Friday conducted searches at eight premises across Uttar Pradesh, Delhi and Punjab as part of a money laundering investigation into an alleged ₹450-crore bank loan fraud, officials said.

The searches were carried out by the ED's Lucknow zonal office against Santosh Overseas Ltd., its promoters and other linked entities. The action was undertaken under the provisions of the Prevention of Money Laundering Act (PMLA).

According to officials, the ED's probe stems from a Central Bureau of Investigation (CBI) case concerning an alleged fraud involving a ₹450-crore loan secured from a consortium of banks.

The agency is investigating allegations that the loan funds were diverted and subsequently layered through a network of shell companies and related entities. The funds were allegedly routed using accommodation entry operators and hawala channels to conceal their origin and movement.

The ED has further alleged that the suspected financial transactions were facilitated through fake invoices and circular transactions, in which money was allegedly moved between interconnected entities to create the appearance of legitimate business activity.

The latest searches are part of the agency's ongoing efforts to trace the proceeds of the alleged crime, identify the beneficiaries and establish the flow of funds. Further details about any seizures or findings from the searches are awaited.