PATNA, Jan 12: The Enforcement Directorate has arrested four people, including a former CEO, as part of a money laundering investigation linked to alleged embezzlement of funds at a Bihar cooperative bank promoted by an RJD MLA, official sources said on Sunday.
The federal agency launched raids against RJD MLA from Ujiarpur Alok Kumar Mehta (58) and some others allegedly linked to him in Bihar on January 10 as part of the probe into alleged bungling of funds in the Vaishali Shahri Vikas (VSV) Co-operative Bank.
Those arrested are former bank CEO Vipin Tiwari, his father-in-law Ram Babu Shandilya, Nitin Mehra and Sandeep Singh.
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The accused were produced before a PMLA court here and remanded to judicial custody, the sources said.
They said Mehta, former state revenue and land reforms minister, is among the promoters of the bank, apart from some other linked entities.
The money laundering investigation stems from some state police FIRs filed against the bank and its office-bearers for alleged embezzlement of funds worth about Rs 85 crore.
According to an ED official, the alleged fraud was committed through an estimated 400 loan accounts and disbursal of funds was done based on “fake or forged” warehouse receipts.
The bank employees and other private persons, who are alleged beneficiaries of the proceeds of crime and worked in connivance with Mehta and his associates, are also covered in the search operations, the sources said.
The RBI had carried out a verification of the bank and identified the alleged diversion of funds, they added.
The RJD has slammed the BJP-led central government over the ED action.
Earlier, RJD spokesperson (Bihar unit) Mrityunjay Tiwary told PTI, “The BJP uses ED, CBI and IT department against the RJD and leaders of other opposition parties… It is evident that the rulers in Delhi are afraid of the RJD and its leaders and that is why they are using central probe agencies against our leaders.” (PTI)
