ED Arrests Ex-Samajwadi MLA in Rs 700 Crore Gangotri Enterprises Bank Fraud Case

The Enforcement Directorate has arrested former Samajwadi Party MLA Vinay Shankar Tiwari and another individual in a Rs 700 crore bank fraud investigation involving Gangotri Enterprises. The arrests followed searches across multiple locations, with the ED uncovering significant financial misappropriation and fraudulent activities linked to the company's operations.

The Enforcement Directorate (ED) has taken into custody Samajwadi Party leader and former MLA Vinay Shankar Tiwari, along with Ajeet Pandey, in relation to a massive Rs 700 crore bank fraud. The ED announced these developments on Tuesday, indicating a significant move in their ongoing investigation.

Raids were carried out at 10 different locations including Lucknow, Gorakhpur, Maharajganj, Noida, and Mumbai as part of the investigation into Gangotri Enterprises Limited. Both Tiwari and Pandey were apprehended on April 7, and a Special Court in Lucknow granted them judicial custody. They were later transferred to Lucknow Jail and remain in ED custody till April 11.

Gangotri Enterprises, entwined in controversy over governmental contract executions, is now facing scrutiny for alleged financial misconduct. The ED's probe stems from a Central Bureau of Investigation FIR, uncovering that GEL allegedly defrauded banks of Rs 754 crore through collusion among its directors and other key figures.

Findings suggest a deliberate misappropriation and diversion of funds to various entities linked to Tiwari and his relatives. The ED identified significant property transfers to entities without adequate consideration post-NPA declaration. Provisional Attachment Orders have been issued, confirming the scale of the fraud.

The ED asserts that funds were misused under the pretense of investments and interest-free loans within the group's companies, with high-value properties transferred to benami entities. The searches yielded numerous damning documents backing these claims.

(With inputs from agencies.)