ED Uncovers Major Bank Fraud Network in Bhopal

The Enforcement Directorate (ED) conducted raids in Bhopal, seizing valuables worth Rs 110 lakh amidst an investigation into fraudulently diverted bank funds by Excel Vehicle Pvt Ltd. Alleged misappropriations led to a Rs 44 crore loss for Bank of India, sparking wider inquiries into connected entities.

In a significant crackdown on financial fraud, the Enforcement Directorate (ED) has seized diamond and gold jewellery valued at Rs 85 lakh and Rs 25 lakh in cash during searches at four locations in Bhopal. The raids are part of an investigation into an alleged bank fraud by Excel Vehicle Pvt Ltd, its directors, and others regarding misappropriation of funds from the Bank of India, the agency revealed on Friday.

These operations, conducted by the ED's Bhopal Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, uncovered various incriminating documents and mobile phones. According to the agency, Excel Vehicle Pvt Ltd diverted funds to sister concerns and related entities, resulting in a loss to the bank estimated at Rs 44 crore.

The probe began following a First Information Report from the CBI citing violations under various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988. Findings indicate that Excel Vehicle Pvt Ltd secured a credit facility of Rs 42 crore in 2014, but by 2017, the account was classified as a Non-Performing Asset. Further complications arose in 2019 when separate investigations revealed properties previously mortgaged with Kotak Mahindra Bank were also linked to Bank of India, exacerbating the fraud assessment by the latter.

(With inputs from agencies.)