ED raids in Delhi and Pune over Rs 425 crore bank loan fraud case

New Delhi: The Enforcement Directorate (ED) on Tuesday conducted searches in Delhi and Maharashtra as part of a money laundering investigation into an alleged bank loan fraud of Rs 425 crore, official sources said. The raids covered a total of 10 premises (9 in Delhi and one in Pune) as part of the probe against a company named Gupta Exim India Private Ltd. (GEIPL), the sources said.

The ED case, filed under the Prevention of Money Laundering Act (PMLA), stems from a CBI FIR filed against the company, its promoters and directors who are alleged to have siphoned off the loan funds extended by the Punjab National Bank (earlier e-OBC Bank) to the tune of about Rs 425 crore. The loan funds were "diverted" to various related entities of the accused company, the sources said.