ED Raid Targets RJD Leader Alok Mehta in Multi-Crore Bank Fraud Case

The Enforcement Directorate conducted raids at 18 locations linked to RJD leader Alok Kumar Mehta in connection with an Rs 85 crore bank fraud. The investigation has uncovered the involvement of bank employees and private individuals. Mehta is scrutinized amidst growing attention on financial crimes in India.

The Enforcement Directorate (ED) executed search operations across 18 locations associated with Rashtriya Janata Dal (RJD) leader and former Bihar minister Alok Kumar Mehta on Friday. The raids, spanning Bihar, West Bengal, Uttar Pradesh, and Delhi, relate to an alleged Rs 85 crore bank loan fraud involving the Vaishali Shahri Vikas Co-operative Bank Ltd.

According to ED officials, the fraudulent scheme was carried out through about 400 sham loan accounts, with funds disbursed based on falsified documents, including forged warehouse and Life Insurance Corporation (LIC) receipts. Bank personnel and private individuals, reportedly reaping benefits from the illicit proceeds and collaborating with Mehta and his accomplices, are also targets in the search operations, an officer disclosed.

The investigation points to the involvement of bank staff and private figures who allegedly colluded with Mehta to misappropriate funds from the crime's proceeds. These individuals are thought to have been crucial in facilitating the fraud and siphoning the embezzled money, as stated by the officer. The ED's comprehensive searches aim to gather further evidence and trace the illegal money flow.

This case amplifies the increasing scrutiny of high-profile financial crimes nationwide, with enforcement agencies intensifying efforts against suspected economic offenders. Representing Bihar's Ujiarpur constituency as an RJD MLA, Mehta is a prominent political figure, recognized for his ties with RJD leader Lalu Prasad Yadav.

Mehta's career, marked by his tenure as a cabinet minister overseeing cooperative development, has been pivotal in defining RJD's strategies and galvanizing grassroots support in Bihar. Known for advocating social justice and critiquing the BJP-led central government, his political journey has been marred by recent allegations of financial corruption, prompting heightened investigation by agencies like the ED.

(With inputs from agencies.)