ED Cracks Down on Ex-MLA in Massive Bank Fraud Case

The Enforcement Directorate arrested former UP MLA Vinay Shankar Tiwari and a senior official of his company for an alleged bank loan fraud of Rs 750 crore. The case is linked to a CBI FIR. Tiwari and Pandey, his company's MD, face charges under the Prevention of Money Laundering Act.

The Enforcement Directorate (ED) carried out a significant arrest in the financial sector on Monday, detaining former Uttar Pradesh MLA Vinay Shankar Tiwari in connection with an alleged Rs 750 crore bank loan fraud. This move is part of a money laundering investigation linked to a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI).

Alongside Tiwari, Ajeet Pandey, the managing director of Gangotri Enterprises, was also arrested, with both apprehensions occurring under the Prevention of Money Laundering Act (PMLA). These individuals were taken into custody from different districts in Uttar Pradesh.

ED officials accompanied these arrests with searches at various locations tied to Gangotri Enterprises, a construction company involved in road projects and toll plaza operations. The company and its promoters allegedly misappropriated and diverted significant credit amounts, resulting in substantial losses for a consortium of banks led by Bank of India.

(With inputs from agencies.)