The ED has searched 10 locations across Uttar Pradesh, Delhi and Punjab in an alleged ₹450 crore bank fraud involving M/s Santosh Overseas Ltd. The money laundering probe stems from a CBI FIR based on a complaint by IDBI Bank on behalf of a lending consortium. Officials said ₹10.5 lakh in cash, digital devices and documents concerning assets worth nearly ₹75 crore were recovered. Investigators are examining alleged loan diversion, fund layering and related financial transactions. The allegations remain under investigation.
ED Raids in ₹450 Crore Bank Fraud Case: Searches Across UP, Delhi and Punjab Uncover Cash, Assets and Digital Evidence
In a ₹450 crore alleged bank fraud and money laundering case, the Enforcement Directorate has conducted searches at 10 locations linked to M/s Santosh Overseas Ltd and recovered cash, digital devices and records of high-value assets.
The Enforcement Directorate (ED) conducted simultaneous searches in Uttar Pradesh, Delhi and Punjab in connection with an alleged ₹450 crore bank fraud involving M/s Santosh Overseas Ltd. (SOL). The operation, conducted by the ED's Lucknow Zonal Office, is part of a money laundering probe into the alleged diversion of loans obtained from a consortium of banks.
An official press note released by senior ED officials in Lucknow said simultaneous searches were conducted at 10 locations under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002. The searches were carried out at the premises of the promoters of the company, the family members of the promoters, the companies associated with the promoters, the operators of entry to accommodation, the facilitators and the statutory auditor.
During the operation, the investigators also seized cash of ₹10.5 lakh and recovered papers related to assets worth nearly ₹ 75 crore. Officials also confiscated several digital devices, financial records and documents which are believed to contain evidence of fund diversion, layering and money laundering activities.
How the ₹450 Crore Bank Fraud Investigation Began
The probe started after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) based on a complaint by IDBI Bank on behalf of a consortium of lending banks. The ED alleged that M/s Santosh Overseas Ltd. had diverted and siphoned off the loans taken from the consortium and caused wrongful loss to the tune of about ₹450 crore.
The agency said the money it borrowed was not used for its intended business purposes. Instead, investigators believe the money was laundered through a network of companies and financial dealings intended to disguise its source and movement.
The case remains under investigation, and the findings so far are based on evidence collected during the ongoing probe, officials say. The allegations have not been tested in court, and the investigation is continuing.
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Shell Companies and Alleged Fund Diversion Under Scanner
Investigators have uncovered a vast network of shell companies and accommodation entry operators that were allegedly used to conceal and launder the proceeds of crime, the ED said. These entities were critical in hiding the movement of money, the agency says.
Officials said the money was transferred through fake purchase and sale transactions supported by fake invoices. The money was allegedly filtered through a series of companies with no real commercial activity to create layers designed to disguise the money trail.
The investigation has also uncovered evidence of the establishment of several shell companies using allegedly forged or misused identity documents. These companies were allegedly formed only to divert funds and to generate accommodation entries.
The money was also suspected to have been round-tripped through different firms controlled by the promoters and their family members, the investigators say. The ED said such transactions may have been aimed at integrating the alleged proceeds of crime into the legitimate financial system.
ED Examining Role of Professionals and Financial Facilitators
The operation also went after people and companies thought to be involved in the alleged laundering process. These are accommodation entry providers, financial facilitators and professionals thought to have helped to structure complex financial transactions.
The searches also covered the statutory auditor associated with M/s Santosh Overseas Ltd. Records are being reviewed to determine if any professionals were involved in the alleged diversion or concealment of funds, investigators said.
Officials said they are now analyzing the digital devices and financial records that were seized forensically. The agency wants to track the entire money trail, identify more beneficiaries and find out whether more assets linked to alleged proceeds of crime can be attached under the Prevention of Money Laundering Act.
The ED said it may take further action depending on the evidence it collects as the investigation progresses. Authorities are looking into possible involvement of more people and entities in the suspected bank fraud and money laundering operation, and Sprouts News will follow up on developments.






















